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Cramer: This is day one of a rally

Anita Balakrishnan
Updated
Adam Jeffery | CNBC. With the financial sector on a tear, we could be at the start of a "stealth rally," CNBC's Jim Cramer told "Squawk on the Street" Wednesday.

With the financial sector on a tear, we could be at the start of a "stealth rally," CNBC's Jim Cramer told " Squawk on the Street " on Wednesday.

"I think this is another stealth rally — no one's talking about it," Cramer said. "People want to get out of these stocks. You gotta stay in. This is day one of the rally."

A fund that tracks the financials sector (NYSE Arca: XLF) bounced 1 percent Wednesday, with Wells Fargo (NYSE: WFC) shares gaining 3 percent after the debut of their new mobile wallet platform.

The pop came a day after new home sales data topped analyst expectations, while builder Toll Brothers (NYSE: TOL) handily beat quarterly earnings estimates, indicating that lending might be picking up, Cramer said.

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"You are seeing these bank stocks just tearing," Cramer said. "They can lead. Remember, finance and tech are this stock market."

The financials hit their 52-week low in February, weathering volatile trade as the Federal Reserve , helmed by chair Janet Yellen , mulls credit tightening. Cramer's comments came as prominent bond investor Jeffrey Gundlach called U.S. stocks "dead money" while markets hinge on the Federal Reserve's next move.

But Cramer said: "This [rally] is a bet that Yellen is going to say, 'Listen, things are stronger.'"

Disclosure: Cramer's trust owns shares of Citigroup (NYSE: C) and Wells Fargo (NYSE: WFC).



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