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Contributors: Douglas McIntyre Jon C. Ogg

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Tuesday, October 17, 2006

Cramer's MAD MONEY (Oct. 16, 2006): Discusses Market Mechanics & Picks

Cramer discussed the phenomenal market about how it turned and why. Cramer said he is going to break tradition and be more general rather than show you specific stocks. It is not just because of earmnings and because of cheap oil. He thinks the market mechanics are the biggest contributor, and the momentum funds are driving it. Cramer said the mechanics are better than they have been for 6 years and the momentum funds are back in full force. The other half of the story is the demand side, and he said now there is little to no selling from insiders and from other sellers because the managers have to be long stocks right now. Cramer said that the trading desks are also having to buy large amounts in the open market to fill orders. This is what is driving buying and what is making traders hold.

Cramer says Lowe's-LOW, Alliant-ATK, Boeing-BA, DuPont-DD, International Paper-IP, Nokia-NOk, Honeywell-HON, Parker Hannifen-PH, Emerson-EMR, Grainger-GWW, Craco-GGG are some of the names to own. He didn't rename his tech picks from last week.

Cramer thinks the momentum rally won't end until year-end.

Jon C. Ogg

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