Cramer's 'Mad Money' Recap: Transports Finally Join In (Update 2)
(Story updated to add Cramer's Lightning Round picks, Am I Diversified segment and closing comments.)
NEW YORK ( TheStreet) -- Sometimes the bulls are just plain smarter than the average bear.
Those were Jim Cramer's sentiments to his "Mad Money" TV show viewers after the Dow was up for the seventh up day in a row. He said simply "the bears just don't have it anymore."
Cramer explained that perhaps the strongest bear case against the markets were the transports, a group that almost always confirms a rally if they too head higher. But in this most recent rally, the transports have been lagging, sending up warning signs for the bears. That was of course, until today.
After losing ground, the transports burst higher today, said Cramer, on the strength of the rail stocks, in particular. He said this group admitted that coal shipments were lower, but also noted that volume in all of their other segments is more than making up for the loss.
Another positive for the markets, the early release of the latest round of bank stress tests. Cramer said the bears were betting against Bank of America (BAC) and in favor of Citigroup (C) , only to get the exact opposite results today.
Cramer said he's seeing strength in the markets all around, including in the home improvement stocks like Home Depot (HD) , Lowes (LOW) and Tractor Supply (TSCO) , with business off the charts so far this month.
Electronic Health Record Play
In the Thursday "Sell Block" segment, Cramer admitted he got it wrong when recommending Allscripts Healthcare Solutions (MDRX) . He said while the stock is up 124% since he first got behind it, the company's lead rival, Cerner (CERN) , has seen its shares rise by 319%.
Cramer said he got the theme correct, but bet on the wrong horse, as Cerner is clearly the better run company, with the better stock to prove it. He said while both companies work in the electronic medical records space, Cerner has the first-mover advantage and has superior technology that is more integrated between in-patient and out-patient facilities. By contrast, Allscripts began as an out-patient provider and has been having trouble integrating its software properly.
Cerner is also the market leader with 13% market share versus just 4% for Allscripts. Cramer said this gives Cerner a built-in advantage as doctors and hospitals are unlikely to change platforms. Cerner also has better visibility, noted Cramer, something investors love. Allscripts, meanwhile, has been having problems managing expectations.