Stock charts show overwhelming strength
In the past 3 decades, has there ever been more bullish time?
Mind you, I am not predicting. I am simply pointing out that in 32 years of investing, I cannot recall a more bullish time, a time when as long as you don't own a food, drug or utility stock, you've been making money. No, make that coining money.
Two groups really stand out: semiconductors and oil and gas. I keep harping on these two sectors because, without owning some of them, you can't keep pace and there's no way you are going to beat the benchmarks. If you are overweighting them, you have to be thinking, even in February, that you might have to be defensive simply to protect your lead! Yes, the gains are that pronounced.
The lead rotates in these groups. Last week, thanks to JDS Uniphase (JDSU) and ARM Holdings (ARMH), you had anything broadband and Apple (AAPL)-related roaring, particularly around tablets and smart phones.
Post resumes after video:
The makeup of what got carried away here truly blows the mind. Anything that's in the broadband chain, fromComcast (CMCSA) to Amphenol (APH) to American Tower (AMT) to the despised F5 Networks (FFIV) to the now-loved Corning (GLW), had spectacular moves -- moves that someone might regard as lifetime moves -- compressed into just a few weeks.
JDSU, which tests the networks, shows that, without a doubt, we have a developing bandwidth shortage, something inconceivable just a few years ago. This is because of Netflix (NFLX), Google's (GOOG) YouTube and Facebook -- all bandwidth hogs.
That means it's Ciena (CIEN) and Juniper (JNPR), the two old stalwarts of the last bandwidth build-out game. They are vastly superior to their old selves, this time because Ciena leapfrogged a lot of technology, courtesy of its not-brilliant, in retrospect, Nortel technology. Nortel was always a pastiche of good technology buried within a mediocre-run company.
These sell at lower price-to-earnings ratios on higher earnings than I can ever recall, even though almost every single chip company, from Atmel (ATML) to National Semi (NSM), is so flush that it has to expand.
Just ask T.J. Rodgers, the CEO of Cypress Semiconductor (CY), who is being dragged kicking and screaming into spending money on capital equipment. He was burned in 2000, and he doesn't want to be burned on big spending again.
However, he makes the excellent point that the devices he has, the guts of the modern-day cell phone keyboard, are stimulated by individual, not corporate, demand. That's something Skyworks (SWKS) echoed when seasoned pro David Aldrich told me we are seeing a two-device revolution, in which everyone owns a PC and a smart phone. He is adamant that a third device is reasonable for many, which might be a tablet, a netbook (yes they still sell) or a fancy desktop.
Of course, the really explosive stocks are Cirrus Logic (CRUS), Nvidia (NVDA) and Arm Holdings, the secular growers that have hooked their growth to Apple. I continue to urge that Micron (MU) is the emerging player of this group and must be bought.
Only the big dogs -- Cisco (CSCO), Intel (INTC), Microsoft (MSFT) and Oracle (ORCL) -- have yet to really propel themselves upward, but this is an amazing rising tide. (Microsoft owns and publishes MSN Money.)
At the time of publication, Cramer was long Apple, Intel, Juniper and Oracle.
Follow Cramer's trades for his Charitable Trust.
Copyright © 2013 Microsoft. All rights reserved.
With the universe of this category in its seasonal sweet spot, these picks have tailwinds propelling them into the new year.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.