Cramer's Stop Trading! Don't Be Afraid of Gold and Housing (10/5/10)

Includes: BA, CMG, CVX
by: Miriam Metzinger

Stocks discussed Jim Cramer's Stop Trading TV Segment, Tuesday October 5.

Chipotle (NYSE:CMG), Chevron (NYSE:CVX), Boeing (NYSE:BA)

Cramer takes a more optimistic view of housing than many, and he doesn't think the sector is that much of a threat to the economy, because he sees the sector as comprising only 5% to 6% in the future rather than its current 10%. "It can't hurt us anymore." He also sees bullishness in stocks and thinks Chipotle Mexican Grill (CMG) and Chevron (CVX) are preparing to break out. He thinks a good employment number, which is likely since companies are reporting more hiring, may make stocks rally.

More delays in the delivery of Boeing's (BA) Dreamliner is no reason to abandon the stock. Cramer thinks once the Dreamliner is in the air, aerospace will enter a 7 year bullish cycle.

“Boeing is a very inexpensive stock,” Cramer said. “It could just go and go and go here.”

Cramer noted a report from JP Morgan that most banks are seeing the mortgage business improve. Finally, he told investors not to worry about gold prices, which are rising because of dwindling demand and not because of a poor economy.


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