Friday, July 27, 2007

Here's to Healthcare

Jim Cramer (from The Street)

We need a little broader market. We don't have the financials, or else Bank of America (BAC) wouldn't be under $50 and Citigroup (C) sitting at $51.

We don't have the packaged goods companies, or Hershey (HSY) wouldn't be at $50 and Coke (KO) stuck in $52 purgatory. These drug stocks, I mean isn't Pfizer (PFE) just paint peeling? Ever since Glaxo (GSK) got its butt kicked there's been nothing here. Biotech's been a total drag.

Homebuilding, and anything remotely related, has been terrible. Retail's miserable. All of the stuff that needs a Fed ease simply hasn't gotten it.

That is why I was encouraged today by the second-half-of-the-day move up in the Hologics (HOLX) and the UnitedHealths (UNH) and the Cloroxes (CLX) and the Colgates (CP). I'll even take the 50 cents that Kellogg (K) gave us.

You can't make it on oil and machinery and infrastructure plus Apple (AAPL), Research In Motion (RIMM) and Google (GOOG). It's not bad, don't get me wrong. But we want these stocks to lead, and eventually something to follow.

Watch the UNH cohort. That's where I am betting you see some good action. Of course, we need a number that's not too strong or soft tomorrow on payrolls to make it happen. But I bet it's the next place to go.

More from Jim Cramer

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