On intraday trading that has seen the Dow down fractionally for most of the session, in Thursday’s Stop Trading!, Cramer is finding numerous places to be bullish.
Earlier in the day on CNBC’s Squawk on the Street, Gold Fields CEO Nick Holland outlined his view on where gold prices are headed. He said that the price of this treasured commodity has a strong foundation at $900 and has the potential to go much higher, with investment demand as the driving force.
Cramer couldn’t agree more. With many major gold companies hedging themselves strategically, Cramer says that now is the time to buy “insurance” for your portfolio in the form of gold stocks, to a level of about 20%. “Goldfields is so right,” he says, praising the company. He also recommends Agnico Eagle Mines and the Gold SPDR as alternatives.
Another comment making headlines was that of economist Abby Joseph Cohen that the S&P 500 could reach a level of 1050-1100 by the end of the year. Cramer is in the middle about Cohen’s predictions, however, as he thinks she doesn’t have the same clout and vision of the market that she used to.
Cramer also gave his take on Gap Stores, which was recommended by Barclays and also gave an upbeat profit forecast for Q2. Cramer sees Gap going to $19-20, although the best of the trade may have already passed, he likes Urban Outfitters or JC Penney in the retail sector more. Specifically, Cramer thinks JC Penney will have a great rest of the year, and expects it to have an especially good back-to-school season.
For more from Cramer on the recent short covering of AIG stock and his take on Forbes’ new list of America’s best colleges, check out the video!
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