Cramer’s Vanity Play: Botox for Migraines?

The market on Wednesday was defying its own inherent logic.

“There are things that are going down that should be going up,” Cramer said during Stop Trading!. “It’s a little counterintuitive.”

The stocks of the S&P 500 were down across the board, rather than showing losses in some sectors and gains in others. These latter moves would be expected as investors fearing a slowdown left cyclical companies for defensive plays like the food and drug stocks.

In fact, if you really think there is a slowdown, Cramer said, there are some drug and food stocks that “didn’t blow up in the quarter, and they’re good.” He recommended Allergan on the likelihood that Botox in the fourth quarter would be approved by the Food & Drug Administration for treating migraine headaches. He said it would be a huge market opportunity for the company.

Also, despite 17 years of data that showing gold prices have climbed 8% in September, that precious metal also was down on Wednesday. Cramer said that investors right now should be piling into gold ahead of next month rather than selling it.

Even amidst these seeming market contradictions, Cramer urged viewers to buy Citigroup on any weakness. He said that while US domestic banks have declined in the face the country’s economic uncertainty, Citi and its international footprint didn’t deserve the hit. So investors should buy C on that weakness.

And finally, Cramer recommended Cree , despite a downgrade from UBS. While the stock tends to trade on Cree’s backlighting business – for cell phones, video screens and the like – it should be bought for a different reason: the eventual phase-out of incandescent bulbs for more energy-efficient lights, such as the company’s LED products.

“That’s why whenever it gets hit,” Cramer said, “I say you ought to buy Cree.”

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