PolyOne ( POL): "This is a tough group but they buy a lot of natural gas and that's good. I also like PPG Industries ( PPG), which is a better company."

Am I Diversified?

In the "Am I Diversified" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets.

The first portfolio included:

Apple ( AAPL), Verizon ( VZ), Costco ( COST), McDonald's ( MCD) and Chevron ( CVX).

Cramer said this portfolio was perfectly diversified.

The second portfolio's top holdings included:

Apple, Bank of America ( BAC), Coca-Cola ( KO), Facebook and NYSE Euronext ( NYX).

Cramer said NYSE Euronext is too similar to Bank of America and this portfolio should drop NYSE and add a drug company like Abbott Laboratories ( ABT) in order to be fully diversified.

The third portfolio had:

Smith & Wesson ( SWHC), Akorn ( AKRX), J.P. Morgan Chase ( JPM), CF Industries ( CF) and Under Armour ( UA) as its top five stocks.

Cramer said "bingo" as this portfolio was also properly diversified.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer said that investors need to ask "What's expensive?". Not which stocks are too expensive, but which companies sell products that simply too expensive for this market.

With stocks like Tiffany ( TIF) and Coach ( COH) rolling over, Cramer said high-end retail has become more than just a Chinese problem, it's a global problem.

That's why Cramer still likes companies like Wal-Mart ( WMT), Ross Stores ( ROST) and Dollar General ( DG).

But Cramer went even further to warn investors to be cautious of companies such as Ralph Lauren ( RL), PVH ( PVH) and VF Corp ( VFC) as they, too, will likely be brought down by the weakness in the high-end segment, even though there's nothing wrong with their businesses.

--Written by Scott Rutt in Washington, D.C.

To contact the writer of this article, click here: Scott Rutt.

To follow the writer on Twitter, go to http://twitter.com/scottrutt.

To submit a news tip, send an email to: tips@thestreet.com.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.
At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, ABT, JPM and MCD.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC Universal or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

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Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.

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