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NEW YORK (TheStreet) -- With Europe back in the driver's seat, Jim Cramer pondered which U.S. stocks are the most vulnerable. He told his "Mad Money" TV show viewers Wednesday that while a 10% pullback a la 2010 doesn't seem likely, some sectors are more vulnerable than others.
Cramer said the oil stocks, including Chevron (CVX) and Exxon Mobil (XOM), are both vulnerable to Europe. Meanwhile, the industrials are a mixed bag. Caterpillar (CAT) could see $70 a share, he cautioned, while others like General Electric (GE) and Alcoa (AA) pose a minor risk.Retail has been resilient, said Cramer, thanks largely to its domestic nature. Stocks like Home Depot (HD) and Walt Disney (DIS) both make the grade. Also on the buy list, recession-resistant names like Procter & Gamble (PG) and Kraft (KFT), a stock Cramer owns for his charitable trust Action Alerts PLUS. Technology stocks don't seem to be troubled. Cramer said he likes Intel (INTC) and Microsoft (MSFT), but warned that IBM (IBM), given its exposure to the Dow Jones Industrial Average, is risky. Also on Cramer's buy list were some banks, like Bank of America (BAC) under $7 a share and Travelers (TRV), along with telco, think AT&T (T) and Verizon (VZ).
Off the Charts/Sell BlockIn a combination "Off The Charts" and "Sell Block" segment, Cramer went head to head with Carolyn Boroden over the charts of the once high-flying commodity stocks, which have been seriously squeezed as of late, as weakness in Europe continues. According to Boroden's research, stocks like Schlumberger (SLB), which has already fallen below its 50-day and 200-day moving averages on a series of lower highs and lower lows, are at serious risk for even further declines. Boroden called Schlumberger a falling knife, saying shares could fall another 26% from current levels. The same holds true for Apache (APA), a stock Boroden felt could have another 20 points of downside. Occidental Petroleum (OXY), Joy Global (JOY) and Freeport-McMoRan (FCX) all show similar patterns and are also at risk for continued downside pressure. As for Cramer, he said that while all of these names create tremendous value, his view was, "Why bother?" Cramer said that with the charts running against you, there are simply easier ways to make money rather than rolling the dice on quick and positive outcomes in Europe.
Facebook: Friend or FoeIn the next installment of his "Friend or Foe" series on the upcoming Facebook IPO, Cramer responded to the fears that Facebook's valuation signals the 1999 dot-com bubble all over again.
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