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
(C) - Get Report
,
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.
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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