Cramer's 'Mad Money' Recap: Reduce Your Exposure to China and Washington (Final)

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NEW YORK (TheStreet) -- It's time to "sell, sell, sell" the cyclical stocks, Jim Cramer told the viewers of his "Mad Money" TV show Wednesday.

With both a slowdown in China and the "Obama factor" weighing in on the group, Cramer said these once high-flying stocks will be forced to give back some of their recent gains.

Once a haven for investors trying to flee the ailing U.S. economy, cyclical stocks like U.S. Steel (X), Caterpillar (CAT), Temple-Inland (TIN) and Freeport-McMoRan (FCX) got the rug pulled out from under them, he said, when Chinese officials poured cold water on the red hot economy last week.

Cramer said not all cyclical stocks should be treated equally however. For his charitable trust, Action Alerts PLUS, Cramer sold shares of Vale (VALE) because the company had too much exposure to China. On the other hand, Cramer kept shares of Cooper Industries (CBE) because that company has little exposure.

Cramer said he's not worried about Boeing (BA) or Ford (F), as those companies are global powerhouses, but he would be a seller of Peabody Energy (BTU) and he's worried about Freeport-McMoRan.

A better play would be to swap into the consumer staple stocks, said Cramer, companies like Kimberly Clark (KMB), Clorox (CLX), McDonald's (MCD) or ConAgra (CAG).