Cramer pointed to Apple and Google as two stocks that jumped with the averages. While he likes both names, he urged viewers to cash out at least part of their positions.
Elsewhere in the market, Hershey right now is a better buy than Deere . Cramer thinks Hershey’s earnings estimates are too low, and he expects the company to raise guidance as a result. Deere, however, is the exact opposite. Earnings estimates are too high and most likely guidance revisions to the downside are on their way.
Cramer also said Allscripts is his play on Obama’s attempts to reform health care. But other related names, such as HMOs like Aetna and Humana, are down because of the president’s aggressive plans for this industry.
Lastly, Cramer said that right now might be a perfect but fleeting chance to buy a home or refinance a mortgage. With the U.S. government paying more to raise debt, consumers most likely will pay higher interest rates across the board, whether for mortgages or other forms of credit. This, of course, comes just as Federal Reserve Chairman Ben Bernanke is trying to buy up mortgages and keep those interest rates down.
While Cramer does see problems with this scenario over the long term, he thinks homeowners and potential homebuyers should use the chance to lock in a low rate.
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