“You have to take every opportunity to buy high quality cyclicals in the weak,” said the host of “Mad Money”.
Cyclical stocks are those whose trading patterns tend to be leveraged for the business cycle and the state of the economy as a whole.
Cramer highlighted the Union Pacific railroad company, whose shares initially fell after it was announced Sunday that rival Kansas City Southern had been acquired by Canadian Pacific in a $ 25 billion deal. Stocks have since recouped those losses, and then some.
Cramer called the carrier a “one stop shop for the grand reopening.”
“If you knew the score you could buy with confidence [Union Pacific] in weakness because this market likes reopening games, ”he said. I bet he has a lot more room to run. ”
Cramer has spent weeks breaking the market rotation, explaining that investors are trading on the winners of last year’s foreclosure, especially in the tech segment, and in companies whose businesses are doing better when the economy is growing.
The major averages all fell over Wednesday’s trading day, although stocks in the energy, industrial and financial sectors of the market were strong.