As stocks stumbled on weak earnings on Tuesday, Cramer said people are hiding in high-yielding utility stocks.
A lot of investors have recently moved into Consolidated Edison , which is Cramer's fave utility. Being as that stock continues to reach its highs, the "Mad Money" host now recommends investing in high-yielding utilities that haven't yet moved. He likes CenturyLink in particular.
Elsewhere in the market, Chinese social networking site Renren will make its initial public offering on Tuesday. Cramer is concerned about its audit issues, though.
The head of the Renren's audit committee has resigned to protect it from any possible fallout from accusations of accounting fraud at another company where he is an executive. Derek Palaschuk, chief financial officer at China-based Longtop Financial Technologies , said he resigned from Renren's board of directors over the weekend.
The news came as a surprise to Cramer, who said he likes to steer clear of companies facing audit issues. Cramer also noted that a lot of investors have recently bought Chinese stocks on margin. He thinks buying on margin is risky and would avoid the practice.
Finally, Cramer discussed the market's recent action. He noted the Vix got "too low" on Monday. Being as the Vix is the market's fear gauge, the low levels suggest "too much complacency," he explained.
Cramer thinks the market's pullback is major, but noted it's had a major run, too. That being the case, he's not surprised highfliers are getting smashed right now.
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