Coca-Cola ( KO), Schering-Plough ( SGP) and McDonald's ( MCD) "are just unbelievable bellwethers of what the Fed's going to do," said Jim Cramer on Friday's "Stop Trading!" segment on CNBC.
"These are stocks that go up when you think that the Fed is not going to do anything," he said. "These are trading down as if there's going to be an imminent rate cut by the time I'm done with 'Stop Trading!'" As for retail, Cramer named the sector as the next potential short-selling target. "The shorts can't operate on the banks, but I think they're going to raid the retailers next," he said. He predicts the move to stocks such as Macy's ( M) and JC Penney ( JCP) because the short-sellers "are kind of bored right now. They've taken everything else apart." Addressing reports that Eli Lilly ( LLY) is looking to buy ImClone ( IMCLN), Cramer said: "These big pharma companies are so desperate that you have to believe that every biotech stock here could be a target, because ImClone is the worst, and Eli Lilly's after it."