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Jim Cramer's Stop Trading! Buy AMAT

TheStreet.com Staff

Sell chemical stocks and buy tech, Jim Cramer said Tuesday on CNBC's "Stop Trading!" segment.

Cramer said a buyout spree in the chemicals business has lifted prices across the board so much that it's time to lighten up on the sector. Cramer said Olin (OLN Quote) and PPG (PPG Quote) "will come in" this week off big runs.

So with the money that investors make taking some chemicals holdings off the table, Cramer would buy Applied Materials (AMAT Quote), which he sees going "up 3 in the blink of an eye," KLA-Tencor (KLAC Quote), which is "not done" and could tack on "a quick 5," and Novellus (NVLS Quote), whose 11% advance Tuesday Cramer called "incredible" in light of its terrible numbers.

Cramer said the whole group is working lately, even Motorola (MOT Quote), so he counseled investors to take their money and "throw it at the tech stocks."

Cramer reiterated that he expects Coke (KO Quote) to hit $55 this week, up from $53 and change Tuesday, and said investors should buy Crown Holdings (CCK Quote) ahead of its earnings report.

"You're gonna like it," Cramer said.