The market has rebounded, so that means industrials are back! Right?
Not so fast, said Jim Cramer. Yes, it is easy to think that the industrials are back with Illinois Tool Works saying good things, United Technologies posting excellent numbers, and both General Electric and Honeywell making positive comments about the global economy. And how about the amazing comeback from PPG skyrocketing to $195 from $176?
Cramer thinks investors should take a closer look and take a look at what is beneath the market movement.
"I do not, for one moment, want to make you think that these big moves on industrials are about the earnings of specific companies," said the "Mad Money" host.
This market rally was too broad to just be related to company earnings or even one sector. Rather, it stems from good prospective news, making the industrials the catalyst.
In Germany, Chancellor Angela Merkel (or "Herbert Hoover in a pantsuit," as Cramer called her) could actually go along with Italy, France and the European Central Bank to borrow money to grow the economy. That means something good will happen there. If Merkel does not blink then that means money will gravitate back to Europe, which is a good thing.