Jim Cramer says an ‘obsession’ with mega-cap tech names is overshadowing a bull market

CNBC’s Jim Cramer on Thursday said that the carnage in tech stocks is concealing a bull market in other names.

“We had a very traditional bull market based on the dollar and interest rates peaking, both of which tend to be terrific for stocks for a whole host of reasons,” he said, adding that “the relentless beatdown in the Teslas and Salesforces and Amazons” is obscuring it.

Stocks fell Thursday after the Labor Department reported that initial filings for unemployment insurance fell to their lowest level since September, indicating that the labor market remains hot despite the Federal Reserve’s interest rate hikes.

While stocks have taken a beating in recent days, many are still rallying overall, he said. Shares of companies including Visa, Mastercard, J.P. Morgan Chase and Boeing bottomed late last year, according to Cramer.

“These huge stocks have had monster, happy moves in the last few months – what we’ve seen this week is merely an orderly decline to burn off their vastly overbought condition,” he said.

Cramer, who has remained adamant that investors stay away from mega-cap tech name, told investors to not make the same mistake as Wall Street by getting caught up in tech stock declines.

“Let’s remember, there are two tracks out there. The tech track that can’t seem to find its footing, rooted in about 30% of the market, and the other track, which found its footing months and months and months ago,” he said.

Disclaimer: Cramer’s Charitable Trust owns shares of Salesforce and Amazon.