The worst of earnings season may already be behind us, Jim Cramer said on CNBC's "Stop Trading!" segment Tuesday. Cramer said sentiment on the upcoming second-quarter earnings parade is bearish in the wake of poor showings by Alcoa ( AA), Lucent ( LU) and 3M ( MMM). But Cramer said with earnings reports starting to roll in in earnest this week, warnings season is pretty much over, and a flow of good profit news could give stocks a boost. Cramer also credited short-sellers with the afternoon rally that pulled stocks back into the black. Cramer said many investors no doubt expected a big selloff in the wake of Tuesday's explosions in Bombay, but when that didn't develop, they unwound those trades, leading to a solid rally. Cramer urged investors to steer clear of Lucent after Monday evening's earnings warning, saying that a freeze on capital spending at AT&T ( T) is hurting everyone in the networking group. Cramer called discount broker Ameritrade ( AMTD) a "hated stock in a hated group" after shares in the company failed to rally on a bullish Bank of America note. By contrast, he says the defense stocks are moving well, thanks in large part to the big buybacks at General Dynamics ( GD) and Lockheed ( LMT), which he says makes those stocks "spring-loaded." One stock that has missed out on the rally in defensive stocks like grocers and their suppliers, Cramer said, is TreeHouse Foods ( THS), a Westchester, Ill., pickle pusher whose shares have been flat since March.