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A Safe Play on Utilities?

Even when the market performs well, as was the case on Tuesday, even big money managers find themselves swamped in the pessimism that still lingers on the Street. So, to protect their holdings in the meantime, they turn to safe plays with consistent earnings and big dividends.

"No group fits this profile better than the utilities," Cramer said. "In a market this horrible, the playbook for most hedge funds and mutual funds says to stock up on the utilities."

Yet utilities stocks got "hammered" in May along with everything else, he said. The beating that they took is yet another reason why the market has been difficult to figure out, Cramer said. To determine if utilities are still the safe haven they once were, Cramer went Off the Charts. With the help of Tim Collins, a well-regarded analyst on Wall Street, Cramer examined the utilities sector SPDR XLU, which is an exchange-traded fund that tracks the performance of the S&P Utilities index.

Watch the video for his complete analysis.

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