So what did the Dow’s best and worst performers tell Cramer about 2017 and 2018?
First, the strength of the winners suggested that the market’s at a loss for good aerospace, machinery, fintech and brick-and-mortar stocks.
“When you look at the top five performers in the Dow from last year — Boeing, Caterpillar, Visa, Apple, Walmart — I think they’re all buys” even though they rarely pull back enough for investors to get in, Cramer said. “[It’s] the stock shortage at work, hence the incredible strength here. And you know what? I bet it continues.”
The message from the losing stocks was more complicated for Cramer because the dogs of the Dow aren’t always as telling as the index’s top brass.
“Nevertheless, on their yields alone, I think Verizon, IBM, Merck and Exxon can hang in there and work higher,” the “Mad Money” host said. “GE’s a whole different story, but if these are the worst five stocks the Dow has to offer, I’d say we can buy ’em low and buy ’em high and watch those equities fly.”