“This is a General Mills market,” Cramer said during Wednesday’s Stop Trading!.
By that he meant that certain stocks were just too hard to trade. Case in point: Cliffs Natural . CLF is “up big” today, Cramer said, after being pummeled because of Australia’s proposed mining tax, even though a significant portion of the company’s business is iron ore here in the States. The stock moved so quickly and seemingly so arbitrarily that both short and long investors in Cliffs Natural could have gotten hurt.
“What I don’t like about this market is you can be so wrong and so right all of sudden,” Cramer said. “This wasn’t the way the market was even two weeks ago.”
The Mad Money host thinks it’s better to own defensive names like General Mills and Johnson & Johnson “for the time being” because the Cliffs Naturals of the market are too volatile.
“Just don’t even go near these hot stocks,” Cramer said.
Also, Cramer called Starwood Hotel’s most recent quarter “the best beat of any company I know.” While some people are worried about the travel industry, he’s less concerned.
HOT is down $3, so “take a look,” Cramer said. “It’s not bad.”
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