Some stocks ripe for an explosion
Shares in car parts, regional banking, oil and natural gas look ready to rally.
By
Jim Cramer, TheStreet
You get those charts, and you get blown away. That's how I felt this weekend after I perused my S&P 500 chart pack that I get delivered every Saturday. Other than an occasional defensive pick, a Kimberly-Clark (KMB) or maybe a Colgate (CL) -- that second one could have been a downgrade from Friday -- I just don't see a lot of rollovers coming.
Nor do I see a tremendous amount of overextended stocks, just a lot of them looking like Devon Energy (DVN) or Emerson Electric (EMR), Cooper Industries (CBE) or Illinois Tool Works (ITW).
There are lots of good retailers that seem ready to take off, and aerospace stocks, championed by Boeing (BA), are having terrific moves. Ford (F), while extended, does not seem overextended, and I can say the same about all of the other auto-parts plays, like Dana (DAN), Magna International (MGA) and Lear (LEA), all of which could go still further.
I particularly like the Oil Services HOLDRs (OIH) stocks, with Schlumberger (SLB), Weatherford International (WFT), Baker Hughes (BHI) and Transocean (RIG) all seeming to be breaking out. That group's been strong into the run in both natural gas and oil, and I don't think the move is over.
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Every single bank looks ripe for an explosion. I think the regionals in particular -- Fifth Third (FITB), Regions Financial (RF), SunTrust Banks (STI), PNC Financial Services (PNC), Huntington Bancshares (HBAN) and Zions Bancorp. (ZION) -- look like total breakouts, the last one needing to do a secondary that could be positive anyway, as we saw from Citigroup (C), Wells Fargo (WFC) and Bank of America (BAC), all of which rallied hard after their offerings.
The only plays of minimum worry would be the steels, as U.S. Steel (X) is leading the pack along with a couple of others (particularly the titanium stocks) that might have gone up too much too soon given Chinese dumping.
I have huge respect for the charts, especially when they speak in unison, as they are doing now. I know earnings season can change everything, but given what we have seen lately from sectors as diverse as autos, retail and tech, I think the onus is on the bears to stop the upside, despite how overbought we are and how strong the year already has been.
At the time of publication, Cramer was long Bank of America, Weatherford and Cooper.
Jim Cramer is co-founder and chairman of TheStreet. He contributes daily market commentary for TheStreet's sites and serves as an adviser to the company's CEO.
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