RealMoney Radio Recap: Tech Timeout

When people look at the market, they think of technology, Cramer told listeners of his "RealMoney" radio show Friday.

But technology stocks are news-driven stocks, he said. He urged his listeners to sell technology before the summer as nothing new comes out in the summer.

"The semiconductor industry is the single worst place to be right now," he said. "Every summer I have been in this business the technology industry has been down, so why should it be any different now?"

PC sales are down and inventory in this sector is piling up, Cramer said. The only stock Cramer said he likes right now in the sector is Apple Computer (AAPL Quote).

Otherwise, Cramer advised listeners to sell technology stocks every time there is a rally in the sector.

"[Right now] the oil, mining and infrastructure industries make sense to me," he said. "Wait until August to buy technology."

In the midst of all the Federal Reserve tightening, banks have been doing well, Cramer said. This tells us the Fed might be finished raising rates.

"I believe that the bank sector is doing well is a good sign," Cramer said. "They've been great predictors of what's to come."

Test Pattern

The market runs in patterns, Cramer said. It can tell you when it is time to buy and when it's time to sell.

Friday is a textbook day, Cramer said. The market rallied [early] because Europe did, and Europe rallied because we did. Then the market went down, he said.

"I like to only buy a stock when I can see the white in its eyes," he said.

"If you missed the opportunity to buy the stock yesterday you have to wait," Cramer said. "Just watch it and be patient."

"I like to buy the one or two stocks that did not rally," he said, adding that he believes any company that is in the machinery business could do well. Cramer also told listeners to take a look at the oil or supermarkets.