Stop Trading!: A War on Wall Street
The market trends seems to have reversed, Cramer said during Thursday’s Stop Trading!, as traders put their money into oil and sell the financials.
Wall Street’s worried about Citigroup and its potential $7 billion in write-downs and Wednesday’s second-quarter profit loss by Washington Mutual. The shorts are rumoring these stocks down, Cramer said.
But XTO Energy’s 26 million-share offering held its ground. Shares were priced at $48, dipped to $46 and then bounced back.
Citi and XTO are the two major battlegrounds in the market, Cramer said, the first for shorts and the second for longs.
“Keep XTO on your screen, and keep Citi on your screen,” Cramer said, “and I think you're going to know the market between now and the end of the day.”
Ford, which reported a larger-than-expected loss of $8.7 billion for the second quarter, is “too speculative for me,” Cramer said. He recommended investors stay away form Ford’s common stock, as well as that of General Motors, Sirius Satellite Radio and Washington Mutual.
In the oil and gas sector, Occidental Petroleum and ConocoPhillips are too cheap considering how high-priced those commodities are.
Lastly, Cramer said he’s not sure why rails like Union Pacific keep going up.
“I'd rather be a seller of the rails,” he said, “than a buyer.”
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