Cramer: On the Cusp of Big Breakouts
NEW YORK ( Real Money ) -- It's all on the banks and the homebuilders. Both groups are on the cusp of what looks like some serious breakouts, and the bulls need them both to get over these humps if we're to see the broader market punch through to the highs.
The leadership is challenged right now, because it is no longer a united front. All the foods and beverages and drugs had gone higher since the year began -- but now, when we see the quarters, we don't like the coloration of many of them. We have decided, for example, not that the environment is hard, but that it's harder for Procter & Gamble
Do you really want to pay $50 and change for General Mills
But the banks? We look back and we think, "How bad were they?" We begin to wonder: Have they gotten too cheap, given how strong housing is? The housing shortage is becoming so palpable that people are beginning to say, "Wait a second -- this group keeps putting up the numbers. Maybe the valuations aren't so wacky."
I know the charts look fantastic for the banks, and I am drawn to PNC
These are the stocks to watch going into the end of April. New leadership should emerge now, or the market will not punch through those highs anytime soon.
Here's one other to watch (heads up to bearish Doug Kass!) -- Berkshire Hathaway
Random musings: Many thanks to regular contributor Matt Horween for suggesting these charts to me. Matt recently did a terrific piece for us that you might have missed.
Action Alerts PLUS , which Cramer co-manages as a charitable trust, has positions in JPM and KEY.