RealMoney Radio: Wal-Mart Malarkey

Cramer says that the retail giant hasn't fixed its problems, so don't be fooled.
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The retail sector is a "multilayered animal" that market players should watch with a "careful eye," Jim Cramer said on his

"RealMoney" radio show Tuesday.

Just because a retailer issues good numbers, it doesn't mean that it should perform well, he said.

Case in point is the largest retailer in America,

Wal-Mart

(WMT) - Get Report

, which "has blinked," Cramer said.

The company produced a better-than expected quarter this morning because it decided to stop cutting prices in an effort to bring the earnings in, he said. And now all the retailers are going up.

Sears

(SHLD)

, which Cramer owns for his charitable trust,

Action Alerts PLUS, was challenged by Wal-Mart's price cutting.

But now everything from it to

Target

(TGT) - Get Report

should be going up as Wal-Mart is not cutting its prices anymore.

"Morons will buy Wal-Mart today," he said. But Cramer urged people to reconsider getting into Wal-Mart, as he believes that there is nothing good cooking there.

The drug stocks are not people's favorites, but this group might put in a bottom soon, Cramer told listeners. "You will know when we get a bottom; the stocks will open up and stay up."

But as long as the current pattern prevails, where the stocks open up but then go down, he advised market players to "stay away."

However, the drug stocks should see a bottom any day now, Cramer said. "We are close."

To see the most recent edition of The RealMoney Radio Recap in its entirety, please click here. This recap is published every day around 3 p.m. ET.

At the time of publication, Cramer was long Sears.

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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