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Cramer said the first camp of investors consists of those former momentum investors who now want to leave the markets ASAP to avoid giving back all of their gains. These investors are shedding stocks like Twitter (TWTR), FireEye (FEYE) and, most recently, King Digital (KING), which declined over 13% today alone.
The second camp of investors is the data junkies, those who are solely focused on things like the latest jobs data, auto and truck sales and Federal Reserve surveys. Cramer said these investors see things as getting better, and they love stocks like the industrials and the growth oil names. These investors are responsible for the gains in Alcoa (AA) and Pioneer Natural Resources (PXD).
The final investor cohort is honed in on bonds. Cramer said this "safety first" group actually has two sub-groups. The first equates low interest rates with recession and thus loves the utilities. The second sub-group is looking for income and is focused on the food and beverage names that offer big dividends.
Cramer said these three groups are duking it out every day and it's almost impossible to determine the winner ahead of time. That's why investors must use caution until a clear direction appears.
Take Whole Foods Off Your List
Whole Foods is a difficult stock to gauge, said Cramer. On one hand, the company is a pioneer and the best-of-breed operator in its space. But on the other hand, the company has guided estimates lower multiple times this year, leading to a 15% haircut in its share price.
Cramer said the problem is that over time analysts will begin paying less and less for an inconsistent operator, which could lead to Whole Foods losing its 24 times multiple. The average supermarket trades at a multiple of just 16 times earnings.