Jim Cramer's 'Stop Trading!': Rate-Cut Bellwethers

Coca-Cola(KO Quote - Cramer on KO - Stock Picks), Schering-Plough(SGP Quote - Cramer on SGP - Stock Picks) and McDonald's(MCD Quote - Cramer on MCD - Stock Picks) "are just unbelievable bellwethers of what the Fed's going to do," said Jim Cramer on Friday's "Stop Trading!" segment on CNBC.

"These are stocks that go up when you think that the Fed is not going to do anything," he said. "These are trading down as if there's going to be an imminent rate cut by the time I'm done with 'Stop Trading!'"

As for retail, Cramer named the sector as the next potential short-selling target. "The shorts can't operate on the banks, but I think they're going to raid the retailers next," he said.

He predicts the move to stocks such as Macy's(M Quote - Cramer on M - Stock Picks) and JC Penney(JCP Quote - Cramer on JCP - Stock Picks) because the short-sellers "are kind of bored right now. They've taken everything else apart."

Addressing reports that Eli Lilly(LLY Quote - Cramer on LLY - Stock Picks) is looking to buy ImClone(IMCLN Quote - Cramer on IMCLN - Stock Picks), Cramer said: "These big pharma companies are so desperate that you have to believe that every biotech stock here could be a target, because ImClone is the worst, and Eli Lilly's after it."

1 What would best describe your stance heading into the coming week of trading? Bullish Bearish Neutral 2 Which of these sectors do you think is set to move up in the coming week? --Choose One--Aerospace and DefenseAirlinesAutomobilesBeverages and Food ProductsBiotechnologyCommercial BanksComputers and PeripheralsConsumer NondurablesEnergy Equipment & ServicesHMOs and HospitalsHomebuildingInsuranceIntegrated OilInternet, Software ServicesInvestment Bankers and BrokersMediaMultiline RetailPharmaceuticalsPrecious MetalsSemis, Semi EquipmentTelecom EquipmentTobacco and AlcoholWireless CommunicationsUtilities 3 Which of these sectors do you think is set to move down in the coming week? --Choose One--Aerospace and DefenseAirlinesAutomobilesBeverages and Food ProductsBiotechnologyCommercial BanksComputers and PeripheralsConsumer NondurablesEnergy Equipment & ServicesHMOs and HospitalsHomebuildingInsuranceIntegrated OilInternet, Software ServicesInvestment Bankers and BrokersMediaMultiline RetailPharmaceuticalsPrecious MetalsSemis, Semi EquipmentTelecom EquipmentTobacco and AlcoholWireless CommunicationsUtilities View the results without voting