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Jim Cramer's 'Stop Trading!': Sell Apple

TheStreet.com Staff

Cramer told investors to sell as Apple CEO Steve Jobs discussed the next-generation iPhone at the Worldwide Developer Conference. The phone has faster data downloads and may outpace devices from Apple rivals Palm (PALM Quote) and Research In Motion (RIMM Quote).

Cramer called the news "marginally positive," saying, "You wanted to sell most of your position into this launch because of the hoopla." He said that he would have changed this strategy if the new phone had a camera that could simulate Apple's iChat software for its Mac computers. "I'm not changing my view," he said.

"I think Apple has been a great trade in a really bad market," Cramer said. However, "the odds do not favor another run on top of this."

As for RIM's prospects, Cramer said he doesn't want to sell the stock. "I still think that BlackBerry is a terrific name." He said he would be a buyer of RIM shares at around $120.

Cramer ended the segment by saying that debt downgrades in the homebuilders sector spell more pain for the space. He said that regional banks Washington Mutual (WM Quote) and National City (NCC Quote) also face similar difficulties. "When I see the homebuilders being downgraded, I know there's more pain ahead," he said.