July 19th - GIS MO PEP UTX

Cramer started out by picking some good stocks on the way down in the rally, identifying that these are good stocks on the way down. The stocks were GIS General Mills Inc. MO Altria Group Inc. and PEP Pepsico Inc. Obviously these are big stocks that I don't feel are right for shorting off the Cramer recommendation since they are too pricey and trade too heavily to be effected by Cramer.

Cramer then spoke of the industrial stocks and how to evaluate them to determine which are good picks. He mentioned UTX United Technologies Corp. as fitting the bill. Once again, an expensive stock ($61.07) that was up a few dollars today.

Cramer also spoke to the CEO of CSX CSX Corp. and it looks like people liked what they heard as the stock was up after hours. Again, this is another expensive stock that trades above $60 right now.

So what am I reading between the lines with Cramer's picks tonight? Well I think he doesn't believe today's rally is going to last for too long. Stressing defensive stocks and diversity is a pretty clear sign.

And a note from today's action on last nights picks. Cramer's 2 sell/avoid picks (PBH and SPC) were both up today, once again showing that shorting the sell picks is not a great idea. I still don't have the confidence to buy his sell picks since there didn't seem to be any selling pressure early. I think these stocks being at 52-week lows and having an up day today in the market might thrown these stocks a curve ball.