iTunes not syncing with iPod Touch 5th gen

Yesterday I purchased an iPod Touch 5th generation, and have it linked to my MacBook Pro using iTunes 12. I am running OSX 10.9.5, and cannot figure out why it is syncing all the songs I have stored in my cloud, when the "sync only selected songs" box is checked. On my ipod screen I can see all of the songs I've ever purchased, with the cloud and arrow.

Does anyone know how to keep these songs from appearing if they are not checked as "to be synced" on iTunes?

Thank you!