“We’re seeing a repeat cycle for biotech stocks,” Jim Cramer told fans of CNBC’s “Stop Trading” segment Monday. Cramer explained that the during the summer of 1990 large fund managers were seeing big losses in savings-and-loan stocks just like many fund managers are seeing today with financials. Back then, money managers started allocating capital into high-growth biotechnology stocks and Cramer said they are doing it again now. Cramer pointed out that biotech stocks like Gilead (GILD), Celgene (CELG), Amgen (AMGN), Merck (MRK) and Genentech (DNA) are all trading higher. “This makes sense when you consider the calendar in 1990 and where we are troughing,” Cramer said. “It’s most likely a bet that the economy’s really going to be soft. If it plays out the way it did in 1990, you’ve got a six-month move here,” he continued. He said his favorite play is Gilead. Moving on to supermarkets, Cramer mentioned that Kroger (KR) is near a 52-week high. He explained that KR is benefiting from higher food inflation by increasing its margins. Cramer said that KR and Costco (COST) are plays on a consumer who is spending less and buying in bulk, while Whole Foods (WFMI) is a value play for its dividend yield. Chat and share ideas with the best small cap traders LIVE each day free at Stocknetworkonline.com