Mad Money

Mad Money: Cramer: China Stocks to Buy and Sell

How can you tell when a company that looks like its business is doing great could be about to lose its mojo? 

As you know, Cramer focuses on the fundamentals — how much money it's earning, how much cash it's generating, how fast it's growing. But sometimes, he warns, the fundamentals don't tell the whole story. And that's the case with one Chinese stock.

"This is an ultra, ultra, ultra steamin' high-growth Chinese company," Cramer said. "This has great looking fundamentals, but, this is what's important, it has a hideous, suspicious looking chart."

Cramer's Sell Block

"The big institutional money managers seem to be gradually jumping ship," Cramer said. "That is the most bearish sign."

That's why Cramer is ready to sell E-House, a Chinese real estate agency, and he thinks you should, too.

So what Chinese stocks does Cramer like better? How about China Unicom or iShare FTSE/Xinhua, he suggests.

"When it comes to China, do not take any chances. I want you to sell EJ," Cramer said. "The fundamentals may look good but ... the chart is saying danger."

Cramer's charitable trust owns China Unicom.

Call Cramer: 1-800-743-CNBC

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