Cramer Remix: These stocks must be sold—Now

Cramer Remix: These stocks MUST be sold. Now
Cramer Remix: These stocks MUST be sold. Now   

As soon as oil rebounded on Tuesday, stocks managed rally out of the deep hole they were in earlier in the trading day. And while Jim Cramer has been adamant about lower oil prices being good for the stock market, there is one giant dark underbelly that he thinks needs to be addressed.

"The longer crude keeps collapsing, the more stress there really is in the system, and the worse the fundamentals get for the financials that lent these oil companies money. That is why we are so glued to every tick up or down in the price of oil," the "Mad Money" host said.

Initially when oil began to sell off, there was a host of small companies that went belly up.

That is no longer the case.

Investors now worry about companies that used to be a lot larger, like Chesapeake Energy, which was right in the blast zone of the recent sell-off. Additionally, Cramer does not think the market is ready for these large companies to default. Much of the debt is held in high-yield bond funds.

"If you haven't heard me before I am telling you that these must be sold. I mean MUST. This is no place to be reaching for yield," Cramer said. (Tweet This)

Read MoreCramer: A $2 stock controls this entire market

A worker on a Chesapeake Energy natural gas rig in Fort Worth, Texas
Matt Nager | Bloomberg | Getty Images
A worker on a Chesapeake Energy natural gas rig in Fort Worth, Texas

Cramer likes to look at the market from all perspectives. That means listening to the fears of investors and interpreting what drastic valuations could mean for the future of stocks — not just what the charts like the VIX are indicating.

"Take, for example, some of the extreme valuations of the market. And when I say extreme, I am talking about genuinely out of control valuations," the "Mad Money" host said.

Cramer found some major disparities in the valuations of several stocks that were very intriguing and could be signaling a recession.

Thus, Cramer thinks the combination of positive currency swings, commodity costs and good yields make the consumer packaged goods group as attractive as the airlines and autos are unattractive.

"Both groups of stocks are forecasting a recession with less travel, less spending money and tighter credit. In other words, they are simply saying the same thing, but in very different ways," Cramer said.

Read MoreCramer: Extreme valuations point to a recession

Another group that intrigued Cramer was the agriculture space. Though there has been weakness in many crop prices, Cramer found something odd happening in the stock market.

AGCO is the world's No. 3 largest maker and distributor of agricultural equipment, such as tractors and combines. It reported a week ago, and even though the quarter was viewed widely as a disappointment, the stock began to work its way higher in the past few days.

In fact, AGCO's stock is actually up year-to-date, dramatically outperforming the S&P 500. To find out what is going on in the world of agriculture, Cramer spoke with AGCO's chairman and CEO, Martin Richenhagen.

"Our point of view today is that Europe might be down slightly … but of course much better than America or South America," Richenhagen said.

In the past few weeks, the market has turned on one of its most loved group of stocks — FANG, which is the acronym for Facebook, Amazon, Netflix and Google-parent Alphabet. It has been almost three years since Cramer and chartist Bob Lang first coined the term, and the stocks have all soared during that time.

However, FANG has lately been held within the vicious grip of the bear, and the whole group has been obliterated. So, will FANG continue to be crushed, or can it make a comeback?

To find out, Cramer turned to the very chartist who helped create the FANG acronym in the first place. Lang is a technician, founder and senior strategist for ExplosiveOptions.net and a colleague of Cramer's at RealMoney.com.

In the long term, Lang believes that FANG is simply facing a pullback and on a longer-term uptrend.

Read More Cramer: Why FANG's about to get its groove back

Last week, while "Mad Money" was in San Francisco, Cramer had the chance to speak with Under Armour CEO Kevin Plank.

Despite reporting a shocking great quarter last week, the stock has been crushed recently, dragged down by the sell-off in high-flying growth stocks.

"The sellers don't seem to care about everything this company has going for it, but eventually I think it will become too cheap to ignore," Cramer said.

Plank discussed the appeal of Under Armour's brand to a new generation, stating, "You don't walk in and see our company, you walk in and you feel our company. You feel our brand."

In the Lightning Round, Cramer gave his take on a few caller-favorite stocks:

Blackstone Group: "This is a private equity company, it might as well be called KKR or Carlyle, they don't have the liquidity to be able to bring companies public. At the same time it yields 10 percent, I think it probably can't maintain that yield. The stock is so low I bet with Steve Schwarzman [CEO] not against him."

Lannett Company: "No. Lannett is like Horizon, which is like Valeant. Even though they shouldn't be lumped together ... Horizon and Lannett are good, but you know what? Don't buy, because this is a Washington story."

Read MoreLightning Round: Washington hates these groups

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