Cramer: Has Coca-Cola Refreshed Market?

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After the worst decline since November, stocks bounced back on Tuesday. But what should you make of the leadership?

Coca-Cola led the gains as did Johnson & Johnson - two of the most defensive stocks in the market.

Looking at the price action, the gains were significant. Coca-Cola shares rose to $42.41, their highest since 1998 while Johnson & Johnson touched a record high of $83.50.

Coke may refresh but it's hard to think it's about to refresh the rally. That is, it's hard to think that Tuesday's gains are a sign that the stock market is ready to embrace risk again. "No doubt about it, these are bellwether stocks," said Jim Cramer.

Although gains may be nothing short of a classic relief rally, Cramer doesn't think more selling is a foregone conclusion.

Quite the opposite – Cramer thinks Coke and J&J did the bulls a great service; the companies told the market exactly what it needed to hear to soothe fears.

Specifically, both companies improved the Street's outlook for first quarter results and were rewarded for their efforts. "Put simply JNJ and KO played their roles to a T," Cramer said. "If you listened closely you could almost hear a collective sigh of relief.".

Buying spread from Coca Cola to Pepsico to Kellogg to Colgate and Kimberly Clark. In health care it spread from J&J to Pfizer and Merck and Lilly.

Jim Scherer | StockFood Creative | Getty Images

"And with that the broader buying spree was on," said Cramer.

Therefore, even though two very defensive stocks led the rally on Tuesday, Cramer wouldn't run for the exits.

As jitters subside, he can easily see other sectors driving the advance; especially sectors such as housing, that have solid fundamental themes driving gains.

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Rather than retrench it may be prudent to make a buy list.

"Now I am not saying that every single sell-off plays out like this. But the vast majority do," said Cramer. Come tomorrow, the Mad Money host wouldn't be surprised to find "buyers are eager to find another thesis so they can dip their toe into the water, again."

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