Jim Cramer knew that part of the market was becoming too hot to handle. All the froth in the biotech sector last week tipped him off, and despite all of the flack he received over it, on Friday he made a bold call to advise investors to not buy biotechs. Sure enough, turns out the "Mad Money" host was right, especially for stocks like Kroger, which he thinks is made for this selloff.
Now, he's making another bold call—the whole market is too hot to handle right now. He compared it to eggs on a griddle that is so hot that nine seconds delivers a perfectly cooked sunny-side up, but 10 seconds renders a burned mess.
"This week we're witnessing the results of a griddle that hot, too hot, a genuine inferno, and those eggs are now charred beyond all recognition," Cramer said.
In Cramer's perspective, he is seeing that the market leaders are retreating, especially in the biotech and tech sectors. Even the industrials are starting to pull back, thanks to a weak durable goods number released on Wednesday.
The "Mad Money" host thinks this is just a typical rotation, aided by the merger announced between Kraft and Heinz on Wednesday. So what do you do next?
Chill out! Cramer thinks that sometimes you need to step to the sidelines and let the market cool off. Take the time to hydrate, and wait while a new rotation is created.
"We need to see the momentum names stop going down and even start to bounce before it's worth starting new positions in the groups that are a part of this conflagration. They will tell you what to do," Cramer added.
Read More Cramer—Ouch! Market is too hot to handle right now
One stock that might have more problems on its hands than Wednesday's selloff, is PVH Corp. This company hosts the house of brands that include Calvin Klein, Tommy Hilfiger and smaller labels such as Speedo and Bass.
Cramer was a big fan of PVH in the past; however, in 2013, the stock peaked and has been hit or miss since.
PVH has fallen 19 percent so far this year and Cramer suspects this may be caused by the large amount of overseas exposure in Europe and a strong dollar. Should investors be concerned about the impact of a strong dollar on PVH?
To find out, Cramer sat down with PVH Corp's CEO Manny Chirico.
"I think that's part of being a global player…geographically it's a fantastic base for the brands that we operate and the businesses that we operate. But it does expose us to currency, in particular when the dollar has been in such a strong posture," Chirico said.
When Cramer heard the news of the Kraft and Heinz merger on Tuesday night, he kicked himself hard for missing it. How did he not know this was coming?
The newly created food giant would sport a 3.5 percent yield, lower input costs across the board in the second half and even come with Warren Buffett's blessing and a $16 special dividend.
How could he not have recommended it recently? Especially considering that Kraft makes Cheese Whiz, one of Cramer's favorite ingredients for a Philly cheese steak. By the way, Cramer recently discovered that Cheese Whiz might have a small amount of real cheese in it somewhere.
Then again, that is the problem. The fact that Cramer had to Google Cheese Whiz to find out if it actually had cheese in it is exactly why he has not liked Kraft Foods Group for anything but a takeover play for years.
"Kraft, you see, is the antithesis of some of the biggest trends influencing the food business worldwide," said the "Mad Money" host.
"Yes, Kraft is still worth buying, even up here. But I'm not wearing a Post-It Note that says KRFT because I missed this deal."
In Cramer's perspective, there is much more money to be made in the natural and organic space anyway.
One company that was a real head scratcher for Cramer on Wednesday was Paychex. What the heck happened?
This company is the second largest payroll processor in the United States, with a specialization in small- to mid-sized businesses. So, one would think that if employment in the U.S. gains, Paychex would be, too.
However, the company reported on Wednesday, and the stock was slammed, down 4 percent by the end of the day. Cramer suspects that some of the drop can be attributed to the fact that it ran up a bit into the quarter.
Paychex's core payroll revenue growth was below the low end of its full-year guidance range, and its checks per client increased by less than 1 percent for the quarter. Additionally, management described its growth going forward as "moderate"—not a great sign, Cramer said.
"At this point a bet on Paychex is a bet on higher interest rates," said the "Mad Money" host. This is because Paychex collects interest on wages from the time that it cuts a paycheck to the time that it is cashed.
Could the looming threat of interest rates and tax reform impact Paychex' growth this year? To find out, Cramer spoke with Paychex CEO Martin Mucci.
"I think that small businesses may have led the way a little bit in the job growth. We were stronger a bit last year; it's moderated some. I still think it is positive," Mucci said.
Read More Cramer: Think rates are going up? Then bet on this
In the Lightning Round, Cramer gave his take on a few caller favorite stocks:
Five Prime Therapeutics: "These antibody therapeutic stocks have about a dozen of them right now. They are at the epicenter of the blast zone. So what we are going to do is we are going to say don't buy until all the weak hands get out."
Isis Pharmaceuticals: "As I said last week...Isis hit a 52-week high last week and I expected that it would probably go down. Then everyone was free to take their gains because I was tired of defending it. My take is this: It's going to go even lower because it's part of the highest multiple speculative biotechs, but it will be a stock that I will like very much as the velocity of the decline wanes."