Jim Cramer's Stop Trading! Mr. Big

A block trade in Schering-Plough shows how big money is getting defensive.

Author:: TheStreet.com Staff
Publish date:: Jun 7, 2006 3:48 PM EDT

A block trade in Schering-Plough shows how big money is getting defensive.

A block trade in

Schering-Plough

(SGP)

suggests that money continues to rotate into defensive names, Jim Cramer said on

CNBC's

"Stop Trading!" segment Wednesday.

Some "Mr. Big" took a million shares of Schering-Plough Monday at $19.70, Cramer noted. "There is some big money moving into these companies, and they are moving in recklessly, which is just terrific because it means prices are going higher." Cramer noted a similar buy earlier in shares of

General Mills

(GIS) - Get Report

Cramer said this week's stock market weakness reflects

Federal Reserve

Chairman Ben Bernanke's "inability to rein in his Fed governors."

"Most of it stems from the idea that every single time you pop your head up, it's like 'Whack a Mole' by the Fed," Cramer said. "I'm waiting for one of these guys to say one of the reasons we have to tighten is that so stocks can go down big. That would be a lot better than the obfuscation coming from them now."

Surveying the wreckage, Cramer said

EMC

(EMC)

, which reiterated earnings guidance Wednesday, is part of a category that also includes

Sun

(SUNW) - Get Report

Intel

(INTC) - Get Report

and

Dell

(DELL) - Get Report

: "really horrible stocks."

Lowered guidance at

AU Optronics

(AUO)

bodes poorly for

Corning

(GLW) - Get Report

, Cramer said.

Cramer reiterated his favor for companies like

Citigroup

Wells Fargo

(WFC) - Get Report

Bank of America

(BAC) - Get Report

and

PepsiCo

(PEP) - Get Report

, where managers are "committed to the stocks" and aren't afraid to buy it back during downturns.

At the time of publication, Cramer was long Schering-Plough.

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