“Tech pin action is back,” Cramer said during Tuesday’s Mad Money, “and indeed it’s bigger than ever.”
“Pin action” is Cramer’s preferred phrase for one piece of good news ricocheting out to the rest of the market. In this case, he was referring to Altera raising its fourth-quarter revenue guidance. While recent positive announcements from Xilinx , Intel and even Microsoft weren’t enough to catalyze the sector, Altera’s bullish statement apparently was. Everyone from Novellus to Applied Materials to AMD to Cypress Semi went higher.
And it wasn’t just tech that benefited from pin action. Guess on Monday reported a strong quarter, and that in turn took up Ralph Lauren , VF Corp. , J. Crew Group and Phillips-Van Heusen . The same kind of move could be seen today in the oils, natural gas, agriculture and minerals.
In fact, the banks seemed to be the only group that missed out. While the financials typically would be necessary to produce such big market gains, Cramer said they didn’t matter today.
Cramer said the trading could be seasonal. July and December are the two best months, and retail investors could be flooding into the market to take advantage, while mutual funds and hedge funds remix their portfolios to look as good as possible for the year’s end. Not to mention, a number of those hedge funds might be scrambling to cover the shorts they placed after the reports of Dubai’s debt trouble. Regardless, people want in so bad they’re even shrugging off the health-care debate.
As broad-based as Tuesday’s rally seemed, Cramer urged viewers to focus on tech. He said the action on Wednesday could move beyond semiconductors to Apple , Hewlett-Packard , IBM or Oracle .
And “so many other pins that look ripe for the knocking,” Cramer said.
Cramer's charitable trust owns VF Corp.
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