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Buy Centex, Cramer said during Monday’s Stop Trading!. He likes the stock ahead of the company’s Aug. 18 merger with Pulte Homes [PHM  Loading...      ()   ].

While the market cheered the June new-home-sales number, Cramer took note of one region in particular, the Midwest, which jumped 40%. The move was “incredible,” he said, and the heartland is Centex’s [CTX  Loading...      ()   ] breadbox.

“These numbers show that that region is back,” Cramer said.

In finance, the Mad Money host called Capital One Financial’s [COF  Loading...      ()   ] stock is a “battleground.” COF saw a “gigantic rebound last week,” a sign that some investors think the worst is over. But at the same time there is a “huge” buyer of September 29 puts. The credit-card company has shot back to about $30 from $20, and it appears that some people are betting against a continued move higher. Cramer predicted a pullback before COF makes its next leg up in share price.

Cramer praised Agilent Technologies [A  Loading...      ()   ] for buying Varian [VARI  Loading...      ()   ]. He likened it to similar deals by Bristol-Myers Squibb [BMY  Loading...      ()   ], Johnson & Johnson [JNJ  Loading...      ()   ] and even First Niagara [FNFG  Loading...      ()   ], whose stocks increased in value post-acquisition. More M&A is likely, he said, when other companies see this kind of positive response from the market.

Lastly, Cramer called Eaton [ETN  Loading...      ()   ] “overbought.” While ETN one of his favorite stocks, it’s too expensive right now.

“Let’s wait for a pullback,” he said.

Watch the video to find out why Cramer said that buying this latest US Treasurys auction is a “sucker’s bet.”










Cramer's charitable trust owns Bristol-Myers Squibb.

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