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Jim Cramer's Stop Trading! Phelps Dodge Is Gold

The trader would buy the copper miner and back off the consumer staples about now.

A healthy market and hedge fund activity make it time to buy

Phelps Dodge

(PD) - Get PagerDuty, Inc. Report

, Jim Cramer said Thursday on

CNBC's

Stop Trading! segment.

Cramer said hedge fund Atticus, a big investor in Phoenix-based Phelps Dodge, has signaled it wants to find a buyer for the copper miner. He said that with the fund's efforts and with merger mania still swirling about the metals business, Phelps Dodge is "going to par," Wall Street speak for $100, from a recent $92.

Cramer said

Pepsi

(PEP) - Get PepsiCo, Inc. Report

had a pretty good quarter, but he pointed to 8% growth in third-quarter Gatorade sales as evidence for why the run in consumer staples may be peaking. He said he would sell

Colgate

(CL) - Get Colgate-Palmolive Company Report

and

Clorox

(CLX) - Get Clorox Company Report

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and that

Procter & Gamble

(PG) - Get Procter & Gamble Company Report

is heading to an options expiration-influenced 60 from 62 now.

The bull market now, Cramer added, is in food plays like

Yum

(YUM) - Get Yum! Brands, Inc. (YUM) Report

,

McDonald's

(MCD) - Get McDonald's Corporation (MCD) Report

and

Darden

(DRI) - Get Darden Restaurants, Inc. Report

. Though he hastily added that you wouldn't know the bulls are running from reading the paper.

"This is the first time we've had a warning label on the front of the package," Cramer said, likening the market to a cigarette box. "It's very uncool to talk about a rally."

Cramer said he believes the market is heading through 12,000 on the Dow, regardless of the media negativity. He also said "verisimilitude."

At the time of publication, Cramer had no position in stocks mentioned.

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