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Recap of Jim Cramer's comments on Stop Trading! Friday October 3.

Predicting a Fed Rate Cut - Coca-Cola (NYSE:KO), McDonald’s (NYSE:MCD) and Schering-Plough (SGP)

The market is so “completely exhausted” after this past week, Cramer said that it’s “falling on its own weight.” The Dow was down about 20 points with just a half-hour left in trading, and many on Wall Street seem to have already shifted their attention to problems other than the House’s passing a $700 billion bailout bill, such as falling employment numbers. Coca-Cola, McDonald’s and Schering-Plough "are just unbelievable bellwethers of what the Fed's going to do," said Cramer. "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!" Someone somewhere might be expecting a cut then, Cramer said, if not here in the U.S., then overseas.

In the Crosshairs - Macy's (NYSE:M) and JC Penney (NYSE:JCP)

The SEC won't let the shorts target financials stocks, so Cramer said the next victims could be the retailers. He predicts the move to stocks such as Macy's and JC Penney because the short-sellers "are kind of bored right now. They've taken everything else apart." Rumoring down companies like Macy’s and J.C. Penney wouldn’t be too hard as the holidays approach and credit is tight.

Big Pharma Desperate – Eli Lilly (NYSE:LLY), ImClone (IMCL)

Addressing reports that Eli Lilly is looking to buy ImClone, Cramer was surprised by Eli Lilly’s move for ImClone. “These big pharma companies are so desperate that you have to believe that every biotech stock could be a target here,” Cramer said, “because ImClone’s one of the worst and Lilly’s after it.”

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Source: Imminent Rate Cut? - Cramer's Stop Trading! (10/3/08)