Thoughts on the S&P 500's Revolving Door

Read More

Click here for the latest from Jim Cramer

These gigantic moves in the S&P 500 need instant analysis. They demand thought and action. Here's my quick set of suggestions.

Additions:

eBay (EBAY - commentary - Cramer's Take): I would use the strength to sell this stock. I think that the time to own stocks that sell at 70 times earnings is over, and this will be a convenient exit point.

Electronic Arts (ERTS - commentary - Cramer's Take): Good solid story that's not ridiculously overpriced and has a lot of momentum. I would hold on to it.

Goldman Sachs (GS - commentary - Cramer's Take): Business is not good at Goldman, and I would think that this huge buy of stock is going to be a terrific sell moment for shareholders. Numbers have to come down here.

Prudential (PRU - commentary - Cramer's Take): One of my largest positions for my personal account. I wouldn't sell a share, as it's way too cheap and has a buyback pending. (You can see my moves before I make them in Action Alerts PLUS -- click here to subscribe!)

Principal Financial Group (PFG - commentary - Cramer's Take): This company is doing extremely well, and I wish I owned it. I would not sell it, as its pension benefits business is booming. I think this stock is one of the best financials out there.

Sungard Data Systems (SDS - commentary - Cramer's Take): Boring story that is not expensive. I see limited upside, so I'd take it off the table.

United Parcel Service (UPS - commentary - Cramer's Take): Weird, business just got weak here because of a pending strike. But a bunch of firms just upgraded it. I would take the short-term money gain and run.

Related Stories

Exposing the Little White Lies

Sells:

Alcan (AL - commentary - Cramer's Take): Tough call here. The company is doing better than expected. It might make sense to swap out of Alcoa (which I own) and move into Alcan. It's a well-run aluminum maker.

Barrick Gold (ABX - commentary - Cramer's Take): Premier gold producer. I own it, and will buy more of it into any weakness from this subtract.

Inco (N - commentary - Cramer's Take): Boring metals producer with a balance sheet that is improving. Inflationists, snap this one up. Others should avoid it.

Nortel Networks (NT - commentary - Cramer's Take): This is the Job of this market -- without any redemption. I would still sell it. The common stock will be worthless.

Placer Dome (PDG - commentary - Cramer's Take): Less hedged than Barrick, so definitely a buy. I think gold stocks still work here in a declining dollar environment, and I'd be tempted to buy this.

Royal Dutch (RD - commentary - Cramer's Take): Merrill Lynch just initiated this one with a buy a couple of days ago. Terrible timing, but now it's a buy. Yields north of three with plenty of room for an increase. Really solid situation. Best-run integrated in the world. A steal.

Unilever (UN - commentary - Cramer's Take): A second-rate Kraft and Procter & Gamble, and this doesn't make it any more attractive. Stick with American packaged goods companies. It is something we do really well.

I hope that helps.

Random musings: A big increase in bears could create better psychology, which the bulls sorely need.

---

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. At the time of publication, Cramer was long Alcoa, Barrick Gold and Prudential. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column to [e-mail]. Click here to get Cramer's book, "Confessions of a Street Addict."