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) and Johnson & Johnson (JNJ). Cramer's other trade of the day is Starwood Hotels & Resorts (HOT), 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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV