Legg Mason’s Miller Is Wrong

Bill Miller, Legg Mason’s legendary fund manager, on Wednesday called a bottom in the U.S. stock market. Cramer couldn’t disagree more.

“You have to do the opposite of what he says,” Cramer said.

But that doesn’t mean some stocks aren’t worth buying. It’s just a question of when. Investors seem to realize that lower gas prices are freeing up much-needed consumer cash, and that retailers are benefiting as a result. But Cramer urged patience until November’s same-store sales report is released next week. He’s expecting the numbers to be “awful,” and share prices to suffer accordingly.

So if you own Target or Kohl’s, both of which are up about 7% Wednesday, take profits now, Cramer said during his regular Stop Trading! appearance. There may be reason to think a bottom is in, but look at J.C. Penney. That stock’s continued to drop no matter how many times analysts thought the decline was done.

Cramer added Macy’s to this list of retail stocks to watch, adding that M, too, shouldn’t be bought until after the November report.

Elsewhere in the market, Cramer likes Verizon and AT&T for their dividends. He said that FiOS and the iPhone, respectively, lend these companies some traction in a difficult economy, and neither stock is heavily owned by hedge funds.

“That may be the most important determinate between now and the end of the year when you want to buy a stock,” Cramer said of the hedge-fund selling that’s hurt some many investors lately.

Cramer also admitted his buy call on Schlumberger on Monday was wrong, saying now that he expects the quarter to be weak. SLB was down about 6.4% today. The Mad Money host thinks offshore drilling on the whole will not be an investable sector for 18 months, Transocean included, if best of breed Schlumberger is struggling.

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