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Cramer: How to Use This Market Pause

As stocks edged lower Tuesday and ended a three-day rally, Cramer recommended viewers use the moment to think about their strategy going forward. The "Mad Money" host said investors should think about "what you can take the pain from and what you can't deal with."

Cramer thinks the financials have a tough road ahead. Some banks will start paying dividends, but Cramer worries about a lack of job growth. In addition, Elizabeth Warren and the Consumer Financial Protection Bureau may seek to further regulate financial institutions. Still, Cramer said he's willing to stick with Citigroup in hopes of potential gains.

Home gamers should also determine whether they want to hold on to companies with exposure to higher commodity costs. Nike is reportedly rising prices to offset increased raw costs. The footwear maker can’t seem to get going after recently reporting a disappointing quarter and now it’s too late to sell this stock, Cramer said. Lululemon , on the other hand, is in a good position to deal with increased costs. He thinks LULU is a buy at current levels.

Cramer recommended viewers also analyze oil stocks that lack catalysts. Every dollar up in crude could lead to a dollar down in the group, Cramer said. Names like Chevron and Marathon are at their highs and can’t be bought here. Cramer would stick with domestic names, like EOG Resources , Continental and Chesapeake , though. They are growth players keying into domestic reserves, he said.

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