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Jim Cramer's Stop Trading! Copper Collapse

TheStreet.com Staff

Anyone interested in going long copper should save their hard-earned cash and look somewhere else, Jim Cramer said Thursday on CNBC's Stop Trading! segment.

"Copper's a fiasco here," Cramer said. "I don't want anything to do with copper."

The problem, he explained, is one of massive supply and no demand. Homebuilders like Toll Brothers (TOL Quote) and Centex (CTX Quote) have huge inventories, while Chile has ramped up production, leading to an imbalance that will pressure prices, he said.

In short, copper is headed lower, he believes. As a result, Cramer indicated that he would be a seller of Southern Copper (PCU Quote) at these levels.

Elsewhere, Cramer said he believed the casino group was undervalued, and he advised investors that they would be better off considering companies building in Macau as opposed to those focusing on U.S. expansion.

Finally, he said Google (GOOG Quote), which he called a "data-point stock," would likely continue drifting until its next quarterly report.