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Commodity, Industrial Plays on China

This is a “scorching good market,” Cramer said during Tuesday’s Stop Trading!, much to the chagrin of short sellers.

“I’m hard-pressed to find areas that are bad right now,” he said.

A lot of bears had banked on health-care reform and a slowed China, as well as increased unemployment and a double-dip recession, pulling down stocks, but these scenarios haven’t played out.

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Not only did the market hold up Monday morning after the House passed a health reform bill, Cramer said, but the Chinese are “ordering more than ever.” As a result, the related commodity companies, which had been “very heavily shorted,” are ramping.

Cramer expects the key indexes to continue their upward trajectory through what he said should be a “remarkable” earnings season. Also, as further proof, he pointed to a “huge” bank rally fueled by the sale of bank bonds, “which have always foretold what the stocks are going to do.” The Mad Money host said that it would be “an incredible move” if the banks joined the runs already taking place in technology, the industrials and health care.

Investors who want a commodities play on China should go with Vale for its exposure to iron, Cramer said. Or they should consider Walter Energy , a major player in metallurgical coal, which is used for its high heat output to make steel.

In the industrials group, Cramer mentioned that Emerson Electronic recently reported good order numbers. He said EMR’s news should translate into similar results for peers Eaton and Parker Hannifin .

“These industrial plays are just incredible,” Cramer said.

Lastly, Cramer recommended Oracle as a play on cloud computing, saying that the company’s integration of Sun Microsystems is “going much better than expected.”

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