Jim Cramer says cyclical stocks are worth buying after Monday’s drop

CNBC’s Jim Cramer said on Monday that investors now have a chance to reduce their technology holdings and buy industrial plays, following a brief drop in cyclical stocks.

The ‘Mad Money’ host, who has made a case for building a balanced portfolio, pointed to stocks such as steelmaker Nucor, Boeing, Union Pacific, General Motors, Ford and Southwest Airlines after each of their shares rose by approx. 2% or more.

He also put United Airlines on his radar. The stock fell 4% during the trading session.

“You need to stay diversified. If you only own technology, you will miss the huge reopening stocks that were thrown away today,” he said.

Financial and industrial stocks traded lower on Monday as technology stocks moved higher.

The Dow Jones Industrial Average, which performed better this month, added 103 points to close at 32,731.20, up 0.32%. The benchmark S&P 500 rose 0.70% to 3,940.59. The technically heavy Nasdaq Composite, which has underperformed so far this year, rose 1.2% to 13,377.54.

Investors have swapped money from high growth and into economic reopening deals over the past few weeks, Cramer said.

“I do not want to completely reject the possibility that the rotation is going its course. The shift to technology today has been very powerful,” he said. But in the end, Cramer got the technical boost to a ‘counter-trend rally’ on Monday.

“In this new environment, the banks and industrial funds can do nothing wrong, while the technicians can do no right, even if they get the occasional counter-trend like today,” he said. “Take advantage of this temporary weakness in the industrial industry, increase the technology to strength if you need money to buy the industrial industry … I do not think you will regret it. “

Cramer highlighted the following names:

Disclosure: Cramer’s charity owns shares in Boeing and Ford.

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