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

CNBC’s Jim Cramer said Monday that after a brief dip in cyclical stocks, investors now have the opportunity to shrink technology holdings and buy industrial market participants.

The host of “Mad Money,” who advocated building a balanced portfolio, pointed to stocks like steelmaker Nucor, Boeing, Union Pacific, General Motors, Ford, and Southwest Airlines after each of their stocks fell about 2% or more .

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

“You have to stay diversified. If you only own technology, you miss out on the big reopening stocks that have been thrown out today,” he said.

Financial and industrial stocks traded lower on Monday, while tech stocks went higher.

The blue-chip Dow Jones Industrial Average, outperforming this month this month, added 103 points to close at 32,731.20, an increase of 0.32%. The benchmark S&P 500 rose 0.70% to 3,940.59. The tech-heavy Nasdaq Composite, which has underperformed so far this year, rose 1.2% to close at 13,377.54.

Investors have been trading money from high-growth holdings to economic reopening trades in recent weeks, Cramer said.

“I don’t want to completely ignore the possibility that the rotation has run its course. Today’s move into technology was very powerful,” he said. But in the end, Cramer wrote Monday’s technical boost into a ‘countertrend rally.

“In this new environment, the banks and industrialists can’t do any harm, while the techies can’t do any good, even if they get the occasional counter-trend like they had now,” he said. “Take advantage of this temporary weakness in the industries, scale out of some technology to strength if you need the money to buy the industry … I don’t think you’ll regret it.”

Cramer marked the following names:

Disclosure: Cramer’s charity owns stock of Boeing and Ford.

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