Cramer's Stop Trading! Counterintuitive Market (8/11/10)

 |  Includes: AGN, C, CREE
by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Wednesday August 11.

Allergan (NYSE:AGN), Citigroup (NYSE:C), Cree (NASDAQ:CREE)

Cramer said Wednesday's sell-off was "counterintuitive" since S&P 500 stocks were down across the board. When there is bearish sentiment, at least some sectors do well, like defensive stocks. Gold should have been up, since it is a sector investors flee to for safety, and because the price of the yellow metal rises an average of 8% in September, but gold also fell.

Cramer recommended Allergan (AGN) on the expected FDA approval of the use of Botox to treat migraines. He would also buy Citigroup (C) which doesn't deserve to be taken down with the rest of financial stocks, since it has significant international exposure. In spite of its downgrade, Cree (CREE) is a buy on the exchange of energy-efficient LED bulbs for regular bulbs. He would buy Cree on any decline.


Jim Cramer was up 31% in 2009. Click here now to sign up for Jim's Action Alerts PLUS and trade alongside him. Special discount for Seeking Alpha users.

Get Cramer's Picks by email - it's free and takes only a few seconds to sign up.