Mad Money

Cramer: These Market ‘Generals’ to Conquer Bears

Cramer Points Out 'Generals of the Market'

"I call them the generals," said Cramer. "And they give me conviction."

Much like General Washington led the nation to victory in the American Revolution or General Eisenhower in WWII, Cramer said stock market generals are equally important on the battlefield that is Wall Street.

And who are these generals?

"They are the stocks that are leading the market higher," said Cramer. "From the looks of the current list, we're looking at a group as powerful as Generals Pershing, Grant, Ridgeway and Marshall.

Much like their historic counterparts Cramer feels confident these market generals can conquer their enemies -- the bears -- and advance the market further.

"They are rock solid of companies, and gains in these stocks tell me the economy is coming back."


As an example Cramer pointed to recent gains in Berkshire Hathaway.

"Why is this general so important? Because of the make-up of the companies it holds. Berkshire is a a mosaic of companies that do well in an environment of American resurgence," Cramer said.

Also Boeing.

"Yeah. Boeing, can you believe it?" Cramer chuckled. But the strength suggests to him that airlines have enough money to buy planes. Also it suggests the defense cuts might not be as bad as the gloom and doom doctors would have you believe.

How about Honeywell?

"You build a lot of buildings you use a lot of Honeywell's thermostats. You build a lot of planes, you buy a lot of Honeywell's cockpit instrumentation. You build a lot of cars, you use their turbochargers," Cramer said. You get the drift.

Walter B. McKenzie | Stone | Getty Images

In addition Cramer is impressed by the price action in Colgate, Johnson & Johnson and Pfizer.

Although he concedes that gains in these stocks could be considered a rotation into defensive stocks, he doesn't think that interpretation would be correct. "There's no way we'd also see gains in Berkshire, Honeywell and Boeing if that were the case."

All told, Cramer thinks gains in these stocks signal strength as well as the potential that more gains lie ahead.

In case you're curious, last time the market was at an all-time high in 2007, Cramer said the generals were terrible – kind of like George McClellan in the Civil War.

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"The last time we hit these highs, the levels from five years ago that we took out, we had some of the worst generals leading us I have ever seen. We went over the top following fertilizer stocks, the materials stocks, second rate technology names and a host of takeover names that didn't get taken over."

This time however the generals are tried and true.

"So many soldiers in this market worry they will be picked off the moment they lift up their heads from the trenches or try to get off the beach," said Cramer. "I intend to follow the leadership of these generals – I believe they can conquer."

Call Cramer: 1-800-743-CNBC

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