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Current DateTime: 11:14:26 10 Feb 2012
LinksList Documentid: 44892814
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May.14
7:48 PM ET

Tech seemed to have reclaimed its leadership position among stocks on Thursday, after about a week of declines. The sector’s strong balance sheets, China prospects, growth potential and ability to attract investors played a big role in the market’s recent two-month rally. But when that gave way, tech took down almost every other group with it.

Interestingly enough, this trend is typical. Cramer mentioned that sell-offs often start when the strongest group stumbles and end when it regains its footing. He thinks that something similar happened today.

“Tech’s strength,” he said, “showed us the pullback might be over.”

A different vanguard led the pack this time around. While semiconductors sparked the rally that started in early March, spending in capital equipment, cloud computing, advertising and IT drove stocks on Thursday. Mergers and acquisitions are picking up as well, and the market got help from usual suspects Apple [AAPL  Loading...      ()   ], Google [GOOG  Loading...      ()   ], Research in Motion [RIMM  Loading...      ()   ] and Amazon [AMZN  Loading...      ()   ].

That’s not to discount the semis entirely. In fact, Cramer endorsed both Intel [INTC  Loading...      ()   ] and AMD [AMD  Loading...      ()   ]. Nor should investors assume the rally’s back on and that there’s no need for caution. Just yesterday Washington reared its meddlesome head, sending stocks downward. That could just as easily happen again.

But Cramer’s 30 years on Wall Street tell him that tech took a stand today, which should mean the end of this most recent sell-off. That, he said, is reason to be at least somewhat bullish.

Watch the video for Cramer’s full report on tech’s resurgence, including calls on Verizon Communications [VZ  Loading...      ()   ], Salesforce.com [CRM  Loading...      ()   ], VMware [VMW  Loading...      ()   ] and more.

Cramer's charitable trust owns VMware.

Call Cramer: 1-800-743-CBNC

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Current DateTime: 10:34:09 10 Feb 2012
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Current DateTime: 10:34:10 10 Feb 2012
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Current DateTime: 10:45:45 10 Feb 2012
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Current DateTime: 10:34:10 10 Feb 2012
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