"Don't get caught in the housing ripple," he warned. "Try to get out of housing companies. In addition, anything related to mortgages or loans should be sold, because the ripple effects extend pretty far and are pretty ugly."
Chipotle Off the Old Block
Despite the fact that certain stocks should be avoided, there are opportunities in this marketplace that people can pursue once they take some profits, Cramer told viewers.
Take, for example,
lululemon (LULU Quote - Cramer on LULU - Stock Picks), which a few days back was up significantly on one of the worst days in the market.
Another stock in which Cramer said he sees opportunity is
Garmin (GRMN Quote - Cramer on GRMN - Stock Picks), "up a fantastic 8 points."
Market players can see the opportunity in
Allergan (AGN Quote - Cramer on AGN - Stock Picks) because of boomers' desire for wrinkle-free skin, as well as in
Under Armour (UA Quote - Cramer on UA - Stock Picks), which is up, Cramer said.
He also sees opportunity in defense stocks, such as
Raytheon (RTN Quote - Cramer on RTN - Stock Picks), and in oil plays.
"You have to focus on the good as well as the bad," Cramer said as he welcomed
Chipotle Mexican Grill (CMG Quote - Cramer on CMG - Stock Picks) CFO Jack Hartung to the show. Cramer congratulated him on Chipotle's good quarter and asked about the effects of rising food costs on the company.
"Food costs are a lot higher," Hartung said. "It was worse by 100 basis points this quarter." But because Chipotle prides itself on using the best ingredients, including meat that's naturally raised, it's always had high food costs, the CFO said. Chipotle was, however, more efficient in labor and utilities.
TheStreet.com Staff
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