Stop Trading!

Wednesday, 15 Aug 2007 | 3:32 PM ET

Goldman Sachs’ downgrade of Pepsi to “neutral” from “buy” was the first topic of discussion on Stop Trading! today.

“You’d expect it to be down a buck and a half,” Cramer said, but Pepsi is up about 90 cents.

Stop Trading!
Mad Money host Jim Cramer shares his stock picks with CNBC's Erin Burnett

Pepsi’s strength in the face of this downgrade “immunizes” the stock, Cramer said. He sees it as a sign of where investors should go.

Procter & Gamble has been doing well and buying back stock. Schering-Plough had a secondary offering in the midst of last week’s madness.

“These are really healthy signs that there is a cohort” of stocks that works, Cramer said, adding that the bears aren’t correct when they say nothing works during a sell-off.

“There’s always a cohort that works,” he said. “As the economy slows, more money goes to Schering and Pepsi.”

Lastly, Cramer admitted he hasn’t liked Pfizer , but at $23 he can’t be negative, he said.

“That’s like being negative on Merck in the $30s, which unfortunately I was, and I screwed up.”

Jim's charitable trust owns Goldman Sachs.

Questions for Cramer? madmoney@cnbc.com

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