Cramer's 'Mad Money' Recap: Gearing Your Portfolio for the Rotation (Final)

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NEW YORK (TheStreet) -- "You can't tell from the averages what really happened today," Jim Cramer told the viewers of his "Mad Money" TV show Tuesday.

He said the name of the game today was sector rotation, and that means the good stocks, and the bad stocks, all trade in lock step.

Cramer said it didn't matter today whether you owned Kellogg (K) or General Mills (GIS), Colgate-Palmolive (CL) or Procter & Gamble (PG). "They were all good today," he said.

If it was a packaged goods company, the market loved it today, said Cramer. Even the bad companies, like Johnson & Johnson (JNJ), which missed earnings, and Kimberly-Clark (KMB), who lowered full year guidance, got a boost from today's action.

Where was the money for the pop in packaged good coming from? Cramer said it came at the expense of the high flying minerals and mining stocks, along with the industrials. Companies like Caterpillar (CAT), 3M (MMM) and Bucyrus (BUCY) were all lower.

Cramer said this sector rotation makes perfect sense in the face of the seemingly endless rally in the "smokestack" stocks. He said the rally can't keep going forever, especially in the face of falling commodity prices, which are near one month lows. Then there is the elephant in the room, unemployment, he said, which will be front and center on Thursday, and again next week.

So how should viewers play this rotation? Cramer said investors should ring the register on their industrials, stay diversified, and consider a position in gold as insurance against uncertainty. By keeping a diversified portfolio, he said, it doesn't matter which sectors are in favor, you'll always win.