Cramer's Stop Trading! Steel Is the Most Overheated Commodity (5/9/11)

by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Monday May 9.

Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX), Amazon (NASDAQ:AMZN), Google (NASDAQ:GOOG), EOG Resources (NYSE:EOG)

Apple (AAPL) has overtaken Google (GOOG) as the most valuable tech brand. Cramer recalled the BlackBerry days when that device was considered to be "the gold standard." Brands create a barrier to entry that often completely frustrates the efforts of the competition. Netflix (NFLX) and Amazon (AMZN) also represent brand names in their fields, and these companies will continue to dominate.

Oil at $102 is in the sweet spot, because it is not expensive enough to create worries of demand destruction and not too cheap. EOG Resources (EOG) is benefiting from historic oil finds in the U.S. EOG is "the place to be," said Cramer.

Higher steel prices may lead to overproduction, so Cramer would get out of steel stocks. After silver's fall last week, Cramer thinks steel is currently the most overheated commodity.


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