Cramer's 'Mad Money' Follow-Up: Pullback Buys

On Monday's "Mad Money" TV show, Jim Cramer encouraged viewers to see the day's selloff as a "gift" and that pullbacks of 5% or more in the right sectors made for great buying opportunities.

He said China is still working and recommended iShares China 25 Index(FXI), which he owns for his charitable trust, Action Alerts PLUS, on a pullback.

On Tuesday, FXI closed up 86 cents, or 2.7%, at $32.23.

He also liked Nordic American Tanker(NAT).

Nordic American Tanker closed up $1.64, or 5.6%, at $30.74 on Tuesday.

Cramer recommended banks such as JPMorgan(JPM) and Goldman Sachs(GS), both of which he owns for Action Alerts PLUS. He said that with banks, the "winners" are safe.

JPMorgan was up $2.84, or 9.6%, to close at $32.53, while Goldman was up $5.35, or 4.7%, at $120.36.

Industrials are also relatively safe, he said, including fellow Action Alerts PLUS holding Emerson(EMR), and he recommended focusing on housing retailers rather than homebuilders. Specifically, he liked Home Depot(HD), also in Action Alerts PLUS, and Lowe's(LOW) as a play on a bottom in housing.

Emerson closed up 80 cents, or 2.5%, at $32.46, Home Depot was up 72 cents, or 2.9%, at $25.87, and Lowe's was up 83 cents, or 4.2%, at $20.55.

As for technology stocks, he said the tech sector will turn first, and he recommended Apple(AAPL), Research In Motion(RIMM) and Amazon(AMZN), as well as Action Alerts PLUS names Qualcomm(QCOM) and Hewlett-Packard(HPQ). Amazon.com (AMZN). He said this group turns first and is the hottest sector out there.

Apple closed up $1.26, or 1.1%, at $121.76, while RIM was up $1.93, or 3%, at $67.03. Amazon closed up $1.17, or 1.5%, at $78.74 on Tuesday; Qualcomm was up 64 cents, or 1.6%, at $40.27; and Hewlett-Packard closed up 75 cents, or 2.2%, at $35.43.

In health care, Cramer's beaten-down pick was Abbott Labs(ABT), and he gave a thumbs up to Pepsi(PEP). Both of those stocks are in Action Alerts PLUS.

On Tuesday, Abbott closed up 28 cents, or 0.6%, at $44.37, while Pepsi was down 51 cents, or 1%, at $49.35.

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