Play to Stay Ahead of the Hedge Funds

You can see what's happening with the hedge funds. I see their footprints. They are so gratified to have a down-big day that they collectively won't let it occur even though it should occur because the Chicago PMI was real bad. Real bad.

What turns first? Where to they go? How much of Amazon (AMZN - commentary - Trade Now) is the Chicago report, especially now that Zappo's is going to make this company a whole mall?! How much of Cisco (CSCO - commentary - Trade Now) is Chicago, given that its turn is weighted toward Asia -- as Action Alerts PLUS Research Director Stephanie Link and I agreed upon in our upcoming RealMoney video. (Action Alerts PLUS subscribers are aware of this already, just so no one confuses our methods!) Tech's international, it has more overseas than here so you are being given an opportunity.

How much is oil? Today? Refined products have low inventories so the hedge funds can return to that area as a way to show they "got" the change in oil this year.

Most important, and where you can get the biggest bang for the buck, is the recession stocks -- Pepsi (PEP - commentary - Trade Now), Procter (PG - commentary - Trade Now) and the other multinational soft-goods plays can be bought. No one seems to have caught that trade yet.

So maybe that's what the hedge funds are going to go for next.

I would get ahead of them and make the move. Look, if the domestic economy is weak and the dollar is weak, how can you not buy Bristol Myers (BMY - commentary - Trade Now), especially in light of the Mead Johnson speculation? (See AA PLUS for more knowledge about this.)

At the time of publication, Cramer was long Cisco, Pepsi, Procter & Gamble and Bristol Myers.

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Jim Cramer is co-founder and chairman 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. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Watch Cramer on "Mad Money" weeknights on CNBC. To order Cramer's newest book -- "Jim Cramer's Stay Mad for Life: Get Rich, Stay Rich (Make Your Kids Even Richer)," click here. Click here to order "Mad Money: Watch TV, Get Rich," click here to order "Real Money: Sane Investing in an Insane World," click here to get "You Got Screwed!" and click here for Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he appreciates your feedback and invites you to send comments by clicking here.

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