This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cramer's 'Stop Trading': Cliffs, J&J

NEW YORK ( TheStreet) -- Investors should avoid hot stocks like Cliffs Natural Resources (CLF - Get Report), Jim Cramer advised during his Stop Trading! segment on CNBC.

Shares of the miner are surging 7.5% to $58.70 in afternoon trading, as the market reacts to an Australian tax that may or may not be passed. Australia is looking to impose a 40% tax on profits made from mining projects.

But Cliffs took a big dip on Tuesday, losing 5.7%, as news spread that Australia government was readying itself to pass the tax.

"What I don't like about this market, and it wasn't this way even two weeks ago, is you can be so wrong and at the same time be so right," Cramer said.

He recommends investors stay away from such swinging stocks, which are becoming increasingly harder to trade, and instead look to more stable names like General Mills (GIS - Get Report) and Johnson & Johnson (JNJ - Get Report).

Cramer's other trade of the day is Starwood Hotels & Resorts (HOT - Get Report), which is taking a beating in afternoon trading. Last week the company reported significantly higher first-quarter profits, which Cramer said should have calmed fears of those who worry about the travel market.

"It's not that bad," he said.

--Reported by Jeanine Poggi in New York.

Follow TheStreet.com on Twitter and become a fan on Facebook.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
CLF $5.29 0.00%
GIS $56.09 0.00%
HOT $81.89 0.00%
JNJ $99.58 0.00%
AAPL $124.75 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs