Cramer told viewers to sell: C, WM, WB, AIG, FNM and FRE. He reminded that he is fearful of GM and F and doesn’t like the retail homebuilders. He said that investors should always have gold in a diversified portfolio. Cramer said that the companies that will rally are companies that offer what’s in short supply and companies that rise in a recession. He said stocks like: CHK, SLB, HNZ and anything that supplies China with the copper, steel and coal that it needs is to be bought here. The future is offshore drilling, Cramer said. His next pick in the space is Smith International (SII) as a drilling-fluid play. He said the fluids are profitable to sell and have been successful in highly regulated areas like Europe. He said Smith and two other companies make up a drilling fluid oligopoly, making the stock more attractive. Smith also issued a 15M buyback authorization, Cramer said, which means it’s a great stock. SELL BLOCK: Darden (DRI) after the stock’s quick rise in the past week, Cramer said it’s time to ring the register. Cramer then reminded viewers that he had told them to avoid Nike (NKE) and Research In Motion (RIMM) ahead of their earnings. He recommended buying both now that they have gone down. He reiterated previous bearish calls on ConAgra (CAG) and RiteAid (RAD). Stay away from retailers, Cramer said. He warned viewers to stay away from: JCP, SHLD, KSS and DKS. Next, Cramer welcomed Russell Huffer, Apogee’s (APOG) Chairman CEO, to discuss his business. Since Cramer’s recommendation on April 28 as a green-building play, the stock has fallen 16%. Huffer said that the quarter missed the Street expectation, but met the company’s expectation. He said that the company is a long-term investment but his backlogs are bullish signs. Cramer said investors should wait another quarter. “Right now we’re in don’t-buy mode,” he said. LIGHTNING ROUND: (Bullish) TUP; SBUX; WRES; HNZ; GIS; FRO. (Bearish) PENN; HCBK.

Fast Money Position Recap

First Moves: Joe likes SU, Guy likes ALL, Karen likes MRK, Pete likes puts on the SMH.
Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Finerman Owns (GS); Finerman’s Firm Owns (MO), (MSFT), (PM), (SUN), (TSO), (VLO), (AXP), (DVA); Finerman’s Firm Owns SPX Index Puts; Finerman’s Firm And Finerman Own (C) And (C) Leaps; Finerman’s Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM); Najarian Owns (AAPL), (ANR), (CHK), (RIMM), (TSO), (XLF); Najarian Owns (MER) Puts; Najarian Owns (NUE) Calls, (QID) Calls, (SLB) Calls, (YHOO) Calls; Terranova Owns (BNI), (CME), (FXC), (LUV), (GOOG), (INTC), (IYT), (XLF), (SU), (YHOO),  (FCX); Terranova Owns Dollar Index Futures.
Terranova is chief alternatives strategist at Phoenix Investment Partners;; Phoenix Investment Partners Ltd. Owns (RWX), (DBC), (DBV), (IGE), (AAI), (ALK), (AMR,) (APA), BP plc, British Airways plc, (CHK), (CVX), (COP), (CAL), (DAL), ENI SPA, (XOM), Gazprom, (HA), (HES), (HOC), (HSE), (JBLU), Lukoil, (MRO), (MUR), (OXY), Petrobras Intl Fin, Petro-Canada, (PBR), Petroleos De Venezuela, (QAN), (RJET), Royal Dutch Shell plc A Shares, (SKYW), (LUV,) (SU), (TSO), Texaco Capital, Total SA, (UAUA), (LCC), (VLO).

MER weakness causing markt weakness this morning. This is a vicious cycle, downgrade parade. Even strong pockets are starting to crack. It is such an interesting time right now with parabolic moves and prices in energy shares and commodity prices but new steep selloffs in many other areas of the market such as casinos, financials, emerging markets, autos, airlines, HB’s. The biggest reason for recent market weakness is the lack of big buyers to counterbalance the waves of selling. Oil made a new high this morning in premarket but now pulling back. The market is extremely oversold and it would not surprise me to see a bounce/cover rally at some point next week hopefully lasting longer than a day. Pick plays with a high probability of success, stay patient, run technicals through support and resistance. Good Luck and great trading, see you in the trading room and Happy Birthday to Wang’s Happytrading’s 2 millionth hit. So many more hits to come, so many new plans ready to launch for all our loyal readers present and future. Thank you for your support and adding to the Collective Intelligence. Get ready for Liftoff.