Jim Cramer's Mad Money, Wednesday October 28."The 5-7% correction Cramer has been predicting seems to be here"

Cramer is a disk jockey in a suit but sometimes he is right. I have noticed that he is a chartist. He is early or was this recent pull back a 'head fake' ? Today the Dow has gained 200 points on stronger than expected 3rd Q GDP. Time will tell. I am with Cramer on this one !!

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Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Wednesday October 28.


The Correction is at hand: Google (GOOG), Apple (AAPL), SPX (SPX), Panera Bread (PNRA), Colgate-Palmolve (CL), Walmart (WMT), Coca-Cola (KO)

The 5-7% correction Cramer has been predicting seems to be here; the Nasdaq's 2% decline, the Dow's 119 point drop and a "tell" on the industrial sector, SPX (SPX), fell 11% after a "major guide down." Panera's (PNRA) strong quarter and 7% rise in stock price seems to be the exception to the rule. However, weak home sales, oil prices and computers indicate increasing bearish sentiment; "We are right to worry that a new leg down might have begun.”

The banking, oil and technology sectors that propelled the market after March lows are starting to show signs of weakness; even Google (GOOG) and Apple (AAPL) are starting to slow down. The only strength on Wednesday came from defensive stocks, such as Colgate (CL), Walmart (WMT) and Coca-Cola (KO). Cramer recommends taking profits while some stocks are still healthy, and he added,“My conclusion is this market smells no end to the recession, and that we have seen the highs” for the year.