Cramer's 'Mad Money' Recap: Exiting Overcrowded Sectors (Final)

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Jim Cramer told viewers of his "Mad Money" TV show Wednesday that an exodus has begun out of the commodity sectors that have been overcrowded with big institutional investors.

Cramer said it's typical on Wall Street for big money to move in tandem. So naturally as the world's central banks began printing money and offering up stimulus, hedge funds and mutual funds began flocking into hard assets such as mining, minerals, steel, oil and fertilizers.

The reverse is true when these sectors get too hot, or too crowded, said Cramer. And that's exactly what's happening now. With the European central banks hinting that stimulus might stop, oil struggling to top $72 a barrel, and today Potash (POT Quote) signaling weakness in fertilizer prices, the exodus out of commodity stocks has begun, said Cramer.

Where is the institutional money headed next? Cramer said it's back to the safety of the defensive names such as the food and beverage stocks and the drug stocks.

He said stocks like Potash, along with Agrium (AGU Quote) and Mosaic (MOS Quote) will see continued pressure, while stocks like Pepsi (PEP Quote), a stock which Cramer owns for his charitable trust, Action Alerts PLUS, and Wal-Mart (WMT Quote) will continue to rally.