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Stop Trading!: What's Wrong With Tech?

Technology stocks seem to be the only sector not enjoying the market’s surge following this past weekend’s big Fannie Mae-Freddie Mac news.

But that’s because these companies get most of their revenues from outside the U.S., and overseas markets are in bear mode, Cramer said during Monday’s Stop Trading!. The Fannie -Freddie developments weren’t enough for Shanghai to finish in the black, and the Bank of England didn’t cut interest rates despite its Producer Price Index being down big. Plus, the dollar’s strong again.

Right now, it’s domestic stocks that are doing well. Just look at Toll Brothers, Masco and Fortune Brands .

Retail, too, is rallying, though investors may wonder why. Oil is still at $106, and housing prices are still going down. So consumers don’t have much money to spend. Cramer attributed the strength to signs in the oil stocks. The oil-services index he follows (OIH) is signaling a drop in oil prices to $60 to $70. If that happens, then the price per gallon of gas at the pump would drop to $2.25. He said he finds that “hard to believe,” but some in the market are thinking that, coupled with housing price stabilization, will lead to a return of the consumer. Hence, the jump in retail stocks.

What’s going on with China? What ever happened to that post-Olympics return? Well, Cramer likened that country’s market to the Nasdaq in 2000. The index fell to 2,500 from 5,000, and still had another 1,000 points to go before it bottomed. China could mirror that fall, he said. But, if you believe the bottom’s in, Cramer recommended The China Fund.

Lastly, if you’re wondering why Fannie Mae and Freddie Mac stock isn’t trading at $0, Cramer chalked it up to “lottery ticket exposure.” The stocks are so cheap, it costs little for investors to buy, and they do so in the hopes that something pushes these names higher.



Questions for Cramer? madmoney@cnbc.com

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

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