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.