NEW YORK ( TheStreet) -- TheStreet's Jim Cramer and Debra Borchardt discussed the stock market and where it may be headed.

Cramer said he has turned rather bleak on the market, noting that it "looks horrible" after the last two weeks of trading. Although we're still close to all-time highs, the breakdowns have become too apparent and bulls seem to be losing steam.

With the recent jump in the 10-year note yields, investors are going to see dividend stocks in the 2% to 3% range drop a bit. According to Cramer, these stocks will have to go down in price until they are back to yielding 4% to 5% before investors will want to get back in.

Investors should look to trim names that have yields under 3% and earnings per share growth under 4%. Many of these stocks, such as Procter & Gamble ( PG) and Clorox ( CLX) are now too expensive and have slow growth.

A lot of companies have appreciated much faster and there is nothing wrong with having a bigger cash position to be able to buy these stocks on a correction.

"If you have huge profits, take some," Cramer concluded.

-- Written by Bret Kenwell in Petoskey, Mich.
Bret Kenwell currently writes, blogs and also contributes to Rocco Pendola's Weekly Options Newsletter. Focuses on short- to intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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