Cramer's 'Mad Money' Recap: Europe-Proof Sectors, Stocks
NEW YORK (TheStreet) -- With Europe back in the driver's seat, Jim Cramer pondered which U.S. stocks are the most vulnerable. He told his "Mad Money" TV show viewers Wednesday that while a 10% pullback a la 2010 doesn't seem likely, some sectors are more vulnerable than others.
Cramer said the oil stocks, including Chevron (CVX) and Exxon Mobil (XOM) , are both vulnerable to Europe. Meanwhile, the industrials are a mixed bag. Caterpillar (CAT) could see $70 a share, he cautioned, while others like General Electric (GE) and Alcoa (AA) pose a minor risk.
Retail has been resilient, said Cramer, thanks largely to its domestic nature. Stocks like Home Depot (HD) and Walt Disney (DIS) both make the grade. Also on the buy list, recession-resistant names like Procter & Gamble (PG) and Kraft (KFT) , a stock Cramer owns for his charitable trust Action Alerts PLUS.
Off the Charts/Sell BlockIn a combination "Off The Charts" and "Sell Block" segment, Cramer went head to head with Carolyn Boroden over the charts of the once high-flying commodity stocks, which have been seriously squeezed as of late, as weakness in Europe continues.
According to Boroden's research, stocks like Schlumberger (SLB) , which has already fallen below its 50-day and 200-day moving averages on a series of lower highs and lower lows, are at serious risk for even further declines. Boroden called Schlumberger a falling knife, saying shares could fall another 26% from current levels.