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Trading the War Hawks

Tuesday, 12 Aug 2008 | 4:04 PM ET

At the close of Tuesday’s Mad Money at the Half, Cramer touched on a few trends investors should watch.

Cramer's Outrage
Discussing Mad Money host Jim Cramer's outrage of the day.

The fact that Flour is trading down almost $5, or about 6%, today is “ridiculous,” he said. Foster Wheeler CEO Raymond Milchovich, in a recent interview with Cramer, said that none of his company’s infrastructure projects will be cancelled unless oil drops below $70 a barrel. If that’s the case, the Cramer recommended buying FLR on this weakness.

“I think that infrastructure is way, way overdone to the downside,” Cramer said.

He also recommended XTO Energy, Nabors and Halliburton, saying “it’s time” for these stocks to be bought.

Defense stocks like General Dynamics, L-3 Communications, Northrop Grumman and Raytheon might be trades going into the Republican National Convention, especially as hawkish presidential hopeful Senator John McCain gains traction against Barack Obama the dove.

Lastly, Cramer said it might be time to buy gold stocks again, as this group is just as oversold as infrastructure. He recommended SPDR Gold Shares.

“I’ve hated gold,” he said, but “I think it’s time.”






Jim's charitable trust owns Foster Wheeler.

Questions for Cramer? madmoney@cnbc.com

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

  Price   Change %Change
FLR
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FWLT
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GD
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GLD
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HAL
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LLL
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AMNB
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NOC
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RTN
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