Jim Cramer's 'Stop Trading!': Buy CME, InterContinental Exchange

The stocks should be up on talk of a merger between the two exchanges, Cramer says.
Publish date:

Buy CME (CME) - Get Report and InterContinental Exchange (ICE) - Get Report, Jim Cramer said on CNBC's "Stop Trading!" segment Monday.

InterContinental Exchange's price had risen dramatically since Cramer recommended the stock on "Mad Money," but has since returned to previous levels, Cramer said. Neither stock has responded favorably to today's news that the CME, which operates the Chicago Mercantile Exchange and the Chicago Board of Trade, is in talks to buy ICE. "What is the ICE doing down?" Cramer asked.

Cramer also believes the economy is not headed for a recession. He named earnings calls from


(HON) - Get Report



(CAT) - Get Report


Parker Hannifin

(PH) - Get Report

and others as signs of the market's health.

Cramer also noted that the KBW Bank Index and the PHLX Housing Sector Index are rallying because of the rate cuts.

In spite of the positive news, Cramer said he believes more action is needed. Given "the losses that we saw for the quarterlies from a

Bank of America

(BAC) - Get Report

or a


(WB) - Get Report

... I genuinely feel that we are too close to the precipice to stop.

"That doesn't mean that a Honeywell isn't doing fine without it," Cramer cautioned. "It's like 1998, when the economy was booming. ... We had to stop the decline

in the financials."

Cramer believes the bank woes may remain independent of the broader economy. "The problems are not with


(IBM) - Get Report



(VZ) - Get Report



(T) - Get Report



(NOK) - Get Report



(MSFT) - Get Report


Cramer added that the

Federal Reserve's

75-basis-point rate cut last week was helpful. "You needed that cut to be able to raise all that money last week." However, the crisis isn't over. "Home price appreciation is nonexistent. ... We saw that number today. ... The oil futures are saying no recession. I think the Fed cuts are needed again."

At the time of publication, Cramer was long Citigroup.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

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