GO
Loading...

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.”




Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

Contact Mad Money

  • Showtimes

    U.S.
    Monday - Friday 6p ET
    Australia
    Saturday 8a, 1p, 7p SYD
    Sunday 12a, 1a, 8a, 7p SYD
    New Zealand
    Saturday 10a, 3p, 9p NZ
    Sunday 2a, 3a, 10a, 9p NZ
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.

Mad Money Moments

Cramer's New Book