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Cramer detects hot cash flooding the market to benefit FANG, Apple and oil

Monday's stock market generated another record close, and on top of that, Jim Cramer saw an extremely rare occurrence — both FANG and oil rallied at the same time.

FANG is the acronym Cramer created to represent high-growth technology plays that tend to lead the sector. It stands for Facebook, Amazon, Netflix and Google, now under the parent Alphabet.

President-elect Donald Trump's surprise victory caused a sudden shift in stocks as money managers rebalanced portfolios. Money rotated into banks and drug stocks, but on the back of FANG. They took money out of technology, and rotated it into the new groups.

This time, it was different.

"The growth stock sell-off made sense when it seemed like there was no new money coming in. But we now have a host of sources showing that cash is flooding into the market, and when that money comes in it flows to stocks like FANG and the much aligned Apple," the "Mad Money" host said. "I think these all have room to run."





Gas is flared off from a flame boom aboard DCOR LLC's Edith offshore oil and gas platform in the Beta Field off the coast of Long Beach, California.
Tim Rue | Bloomberg | Getty Images
Gas is flared off from a flame boom aboard DCOR LLC's Edith offshore oil and gas platform in the Beta Field off the coast of Long Beach, California.
"We now have a host of sources showing that cash is flooding into the market." -Jim Cramer

Diamondback Energy, which aptly has the ticker symbol of FANG, also landed on Cramer's radar. Not only does it have prime holdings in the Permian and low costs, but also Cramer believes it will benefit under Trump.

While President Obama has played a key role in fighting climate change, this also means he doesn't want fossil fuels or pipelines to prosper, Cramer said. Trump is pro-fossil fuels and also wants all fossil fuel companies, even coal miners, to prosper.

"He wants to build more pipelines and drill as much as possible. And while that is probably bad news for polar bears, it is great news for the oil stocks," Cramer said.

Hence, Cramer was a fan of both FANGs. FANG the technology cohort and FANG the energy stock.

Thus, Monday brought a day of mutual coexistence for high-growth technology and natural resource stocks, which Cramer rarely sees occur.

"That is proof of more money coming in, it is proof of a better attitude toward the assets class known as stocks … The Trump rally is still not over, it is just morphing into another form of a bull," Cramer said.


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