NEW YORK ( TheStreet) -- As the Federal Reserve meeting approaches, TheStreet's Jim Cramer tells Brittany Umar what he's watching.

The two-day Federal Open Market Committee meeting is scheduled to take place next week, and the big question remains whether the Fed will taper.

Although the labor market and economy have been recovering, the pace has been far too slow. The housing market already has taken several blows, even before any tapering, Cramer said.

Because of this, the Fed may hold back on a taper, or at the very least, do a small one. Cramer also said that the housing market employs a lot of people and that if the Fed does taper, it could hurt that market even more.

Although rates have risen on the 10-year Treasury note this year, the stock market hasn't seemed to care, hitting new highs when the yield on the 10-year was approaching 3%.

Cramer went on to say that the yield looks to be topping and has probably put in a high -- or close to it -- for the year.

But as stocks continue to rise, Cramer said he actually becomes less bullish. He concluded that banks, apparel and retail have all had obvious shortfalls. Although industrial stocks may get a boost out of China and Europe, the broader market isn't attractive at current levels, Cramer said.

He has positioned the Action Alerts PLUS portfolio for a negative response from the market to the Fed's news, since it has run higher into the event.

-- Written by Bret Kenwell in Petoskey, Mich.

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