Countertrend Rally: Cramer’s ‘Mad Money’ Recap (Monday 3/22/21)

On Mar 23, 2021

The market rarely moves in a straight line. So when you see a counter-trend rally like we saw Monday, that’s your chance to pounce, Jim Cramer told his Mad Money viewers.

We all know that when inflation rears its ugly head, that’s the time to sell growth stocks like technology and snap up cyclical names like the industrials and financials. Monday, the tech sector rose for the second consecutive trading session, offering the opportunity to lighten on tech and start buying the industrials.

Cramer said this strategy is especially important in this market, because there’s a real shortage of quality industrial stocks to buy. Investors only have Deere (DE) – Get Report and AGCO (AGCO) – Get Report to choose from when it comes to farm equipment. Caterpillar (CAT) – Get Report and Cummins (CMI) – Get Report are the only engine makers.

On Monday, Kansas City Southern (KSU) – Get Report was acquired, leaving investors with one less railroad. Between buybacks and acquisitions, there are far fewer shares of industrials available to trade, which makes the day’s weakness a real gift.

The opposite is true in technology, where a deluge of IPOs, SPACs, secondary offerings and lockup expirations keep the markets awash in shares that it really doesn’t need. Cramer said until this spigot is turned off, tech will struggle to see a meaningful rally. That’s why he’s recommending stocks like Nucor (NUE) – Get Report, Boeing (BA) – Get Report, Ford (F) – Get Report and Southwest Airlines (LUV) – Get Report — and not tech.

Cramer and the AAP team are looking at everything from earnings and politics to the Federal Reserve. Find out what they’re telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts Plus.

Executive Decision: Biohaven Pharma

In his first “Executive Decision” segment, Cramer spoke with Dr. Vlad Coric, CEO of Biohaven Pharmaceuticals (BHVN) – Get Report the migraine drug maker with shares that are down from a secondary offering just last week. Biohaven shares closed up 2.4% Monday.

Coric said it’s been one year since Biohaven launched Nurtec ODT for the treatment of migraine. Since then, his company has filled over half a million prescriptions and is changing the lives of patients around the world.