Cramer's 'Stop Trading!': Reconsider Retail - TheStreet

"You saw all these names bottom today because the margining's done," said Jim Cramer on Friday's "Stop Trading!" segment on CNBC. "It doesn't meant that we aren't fundamentally in trouble."

The midday turnarounds in stocks such as

Apache

(APA) - Get Report

,

Transocean

(RIG) - Get Report

and

Mastercard

(MA) - Get Report

were due largely to hedge fund redemptions, Cramer said, for which funds had to finish liquidating today. "There are fundamental problems with every one of those stocks," Cramer said. "That's not a reason to buy. It is a reason to explain why we might have turned around when the selling was done, the forced selling."

Next, Cramer addressed two analyst calls today: Goldman Sachs added

Merrill Lynch

(MER)

to its conviction-buy list and lowered its estimates to the lowest in the market, and Morgan Stanley downgraded

AIG

(AIG) - Get Report

and lowered its price target. "There were two of the worst calls that I've seen in a long time," he said. "The AIG downgrade? Was the guy really recommending it the whole way?" He said he'd buy Merrill if it got back to $22 or $23, but "I don't think it will."

Cramer did see areas for optimism. "We've got to stop being so negative about retail, about banks, about housing," he said. "Those are all up. Those are all up, but people think they're down."

He mentioned retail stocks

Phillips-Van Heusen

(PVH) - Get Report

,

Home Depot

(HD) - Get Report

and

Urban Outfitters

(URBN) - Get Report

. "Why aren't these down if retail's so bad?" he said.

At the time of publication, Cramer had was long Goldman Sachs and Morgan Stanley.

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