Cramer's 'Stop Trading!': Retail ETFs

Jim Cramer that if you don't want to be left behind, you have to "understand the ETF world."
Publish date:

"If you don't understand the ETF world, I think you're going to be left behind," said Jim Cramer on CNBC's "Stop Trading!" segment on Tuesday.

He said that rather than trade individual stocks, "people want to trade ETFs." And when it comes to retail ETFs, he prefers

PowerShares Dynamic Retail

(PMR) - Get Report


Retail HOLDRs

(RTH) - Get Report


There's "too much concentration in the RTH," and

Best Buy

(BBY) - Get Report

is "controlling" it, he said. The ETF is "not a good judge anymore."

"PMR is the better ETF to trade if you're negative on retail," Cramer said.

As for banks, Cramer said "you have to look at the option market. There's a "gigantic June 35 put position" in


(JPM) - Get Report

, he said. "If they start selling those puts, that stock could go to $35."



(GE) - Get Report

could hit $12-and-a-half,

Bank of America

(BAC) - Get Report

could hit $12-and-a-half, and JPMorgan could be driven the other way by the put-selling," he said.

At the time of publication, Cramer was long General Electric, JPMorgan and Bank of America.

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