Foreign issues that were driving stocks down are looking better, said Cramer Monday, as systematic risk in Europe is off the table and China's economic slowdown has a soft landing. The balance of power tilted from bears to bulls so quickly that hedge funds are short and mutual funds are relatively uninvested. If caught leaning the wrong way, how do money managers make it look like they got it right, even though they were wrong?
"They buy the winners," Cramer said. "The stocks that have taken the market by storm."
To save face, hedgies will buy certain stocks and as a result, those stocks will go higher still. It's the main concept in the 'Big Money Playbook,' Cramer explained. He arrived at the list by looking for companies, who are up for the quarter and up for the year. The companies must also be a member of both the S&P 500 and the NASDAQ 100, where money managers will be more likely to spot them. Here's what Cramer came up with:
In the tech space, Akamai rallied 44% this quarter and 79%. The company is all about fast video on the Web, Cramer explained, which is the largest trend in the Internet today. Sandisk is another tech company that made the cut. It creates flash replacement for hard drives and is a direct play on Apple's AAPL success. SNDK was 39% for the quarter and 66% for the year.
MetroPCS is one of Cramer's favorite spec plays, The prepaid cellular phone company is "back from the dead." Its takeover target still well off its 52-week high, The company rallied 26% this quarter and 17% rally for the year.
With 29% growth for the quarter and 28% for the year, no wonder Salesforce.com is just over a point from its 52-week high. This stock is one of Cramer's C.A.N.D.I.E.S., which is a list of stocks that typically don't fall nearly as hard as the rest of the market and tend to bounce back higher than other companies, too.
Pioneer Natural Resources has gone up 26% for the quarter and 47% for the year.
"It has big shale positions and recognized that onshore oil's going to be a terrific place to be post BP," Cramer explained.
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