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Bank of America (0:01)
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Dell (0:31)
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Jim Cramer (1:26)
Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramer people. Make friends. Look, I'm just trying to make you a little money. My job, not just to entertain, but to educate, to teach you. So call me at 1-800-743-CNBC tweet me at Jim Cramer. You are witnessing, or I hope participating in one of the most equal opportunity bull markets I have ever seen. After allowing the data center, power providers and the palantirs to run free for the first half and this market has discovered the likes of Home Depot, Builders, First Source, Toll Brothers and Lenore and a host of other stocks could keep going up for many a day and still be nowhere because they've been such laggards. It's the best kind of bull market, the kind that broadens to new sectors. Which explains how this new group of winners could allow the dow to gain four points as a dip point 11%. Nasdaq declined point 82%. A lot of the winners from the first half in that Nasdaq. I gotta tell you, I'm jones on a dual track right now. All aboard. Look, I kind of can quote chapter, verse your analysis of the tape. Some would say it's the two year, the ten year the chairman Powell rate cut dilemma slash presidential rag there, that's the ticket for them. Or I can say that we have an idea generated market and today's ideas stem from the Senate passing this budget bill that has some good things about housing. So newer, less jaded buyers say okay, that sounds convincing. So let's go buy anything Housing. Yes, that's how these more novice buyers Think. And they've got the money. The money that used to be ours. They didn't steal it. We are experiencing $100 trillion wealth transfer from baby boomers to Gen X, Y and Z ers. And they're cutting their teeth on stocks right now doing just what I'm telling you. It's easy to spot housing wind extended to beaten down stocks like the Target or Kohl's. I'm not a fan of Kohl's, but I am a fan of Target. And the new buyers. The people who aren't trapped by Fed dogma know that there's fundamental worth to Target and it's probably higher than here. You don't need to worry about what that's worth truly is yet because we're nowhere near when Target reports. It also bodes well for the banks, any banks, including bank of America, Wells Fargo, and my favorite right now is Capital One. Now the Capital One is merged with Discover. Its stock has potential to keep climbing because it's put together a credit card powerhouse. And I know it's up a lot, but it can go higher. Plus, now that the banks have all passed the Fed stress tests, they're aggressively raising their dividends. Tonight after the close, JP Morgan bank of America said they plan to put through 8% dividend boost. Wells Fargo, a stock that's owned and beloved by my Child Trust, put 12.5%1. Many more are on the way. This kind of analysis sounds so lacking sophistication, so pedestrian, doesn't it? Am I seriously suggesting that stocks are poised to go higher without a thorough analysis of Chairman Powell's brainwaves? Yes. Why? Because this is a pedestrian market that does lack any sophistication to begin with. So if the Senate's version of the big beautiful budget bill which makes the mortgage deduction permanent, ends up passing, then it's obvious you should be buying the housing stocks because this market is run by Captain Obvious. And you can get ahead of Captain Obvious. Throw in that there's a buyer of anything housing related, a vehicle called QXO run by Brad Billionaire Jacobs, hostile or not, and you got a pretty darn good story. Of course, some of the rally is nothing more than left behind stocks playing catch up. The drug stocks had a rare day in the sun. I wish I had something good to say about them. Maybe it's enough to say that Bristol Myers has a famed pulse, one that lasted until the end of the session. Merck looks good on the charts. Oh, and as painful as it might be, we have food stocks going Higher. I spy. Hershey's up huge. Heaven forbid Kraft Heinz is higher. Now that we've identified the distinctly counter trend rally, one that could last for a bit of time, let's consider what the best breed of those industries are. So maybe we can do some buying. Still housing, we're going with Toll Brothers which had a magnificent quarter and is so well run by Doug the Bomb yearly that I see no reason to stray from this high end home builder. There's something soothing about buying a company makes million dollar homes when the people can afford these homes just got an enormous tax cut. The retail rally is a little more difficult. You might want to shoot the moon and buy Dick's Sporting goods. Betting at Nike could. The Nike turn could benefit them now that they're acquiring Foot Locker. But the stock just ran up 30 points on that news. I say go with Home Depot. I know that the last acquisition they just made GMS materials for professional contractors seems a tad hasty. But the SRS deal from last year seems to be working out well. Home Depot is more than just a storied company. It's a company that reinvents itself regularly, has a strong culture. This time it's really going for the professional, the contractor more important. It almost always works long term. You really don't want to bet against this one. Let me give you another one that has the 3% yield. And it's just completed a dynamite acquisition. Contour Brands, the maker of Wrangler and Lee jeans which did miss the quarter, but not that long ago. But bear with me here. I was with my daughters in British Columbia two weeks ago for some hiking, birding, cold plunging and helicopter fishing. It was cold, rainy, just like we like it. We bought all sorts of layers but not enough of them. So we had to borrow clothes from the resort owner and we borrowed what we effectively called Helly ours, which are actually Helly Hansen's. That's a fantastic clothing brand just purchased by Contour Brands. I cannot believe they practically stole this one for something like 900 million. Exact price not disclosed. I think the acquisition transformed this company and makes up for any mistakes by Wrangler or Lee on the way. I think they should call the company Helly Hansen. You want consumer packaged goods, then that's easy by Procter and Gamble. Because the dollar has been incredibly weak and the company's the principal beneficiary of the by P500 of a weaker dollar. They sell a ton of merchandise overseas. It's suddenly gotten a lot more competitive foods too hard here. Although the sightseers always seem to climb onto Mondelez. That's how to play the counter trend rally. But what do we do with the very different set of winners? For the first half I want you to consider the G. Vernovas and the Helmets and the Palantirs. The stocks are likely to finish the year dramatically higher from these exalted levels. What do you do with the stocks that have been on a run nonstop for 26 weeks though? I think you send them on one of those two week vacations like that. Southeast Asia, Cape Town, maybe New Z. You pay attention, no attention to them. Let them have a good time. Just take them off your screen and come back to them when the rotations run its course. Okay. There's one that's not like that though. Palantir. I think Palantir. It's taken a rare dip. This one's actually more of a shorter vacation. Palantir is going on a staycation. I say it can be bought starting in three days. Monday morning buy some Palantir. Then after that you can go over the power generators. Go for the power generators. Remember Palantir? I said when it's a 50, it says going 100 was 100, says going to 200. Sticking by that tech really hard. There's a lot of bad shareholders in these stocks. Like the people who dumped in video matter earlier this year without regard for the fundamentals of the people dump in video today without any sort of intelligence whatsoever. And Tesla, total dice roll. We have no idea what Elon Musk and the man in the White House who may be the best name caller since me when they called me the Needler in college are going to do. But they sure don't seem like they're on great terms. So my plan is to have the president give Elon to the right to have driverless cars in the interstate. I'm calling that plan shelved but moral. There are usual ways to make a lot of money, but it's really fun to talk about Elon. Here's the bottom line. If this countertrend rally continues, so many stocks decided out the first half will keep running while this year's big winners go through a temporary cooling off period. Except for Palantir, which has a three day cooling off period. More on that later. Let's go to Drew in Idaho. Drew, Booyah.