Cramer Remix

Cramer: Stealth catalyst behind market fits

Cramer: Hedge funds hurting market
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Cramer: Hedge funds hurting market

If you're putting money to work in stocks, you might want to invest in nausea medicine, too. Jim Cramer thinks you're looking at a period of fits and starts, something not seen in the market for quite some time.

For example, on Monday the benchmark S&P 500 (.SPX) index posted 13 new 52-week highs and 12 new lows while the Nasdaq Composite recorded 35 new highs and 122 new lows. Meanwhile, the CBOE Volatility Index (.VIX), a widely cited measure of volatility, has surged more than 30 percent in about a month.

Although it would seem that overseas events ranging from protests in Hong Kong and tensions in Russia to violence in the Middle East are driving declines, Cramer says that's not entirely the case. He thinks there's also something else going on, and it could ruin your profit potential unless you understand what's happening and how it impacts your stocks.

Read MoreCramer: Hedge funds roiling your profits



Source: CNBC

Turning attention to the month ahead, Cramer thinks October could turn truly frightening, if there's too much supply on the market.

By supply, Cramer is talking about the number of new issues that are expected to come public in the weeks ahead. He's concerned that the slew of new offerings could trigger a bout of selling, as hedge funds raise cash by selling winners, in order to get a piece of the .

And in turn, Cramer worries the selling could become aggravated by other events, ultimately generating a broad spiral lower.

"So, I think the next leg of this market, the next 5 percent up or down depends on supply, specifically holding IPOs back from the market. If the deluge of offerings continues into the historically tough month of October, then I think we're looking at more days of defeat than of victory for the bulls."

Digging down into the market, Cramer hopes you were holding shares of Tibco (TIBX), Monday. The stock surged more than 20 percent in a single day after Vista Equity partners offered to take Tibco private for $4.3 billion.

In the wake of events such as these, Cramer often sifts through the market to see if another company may be in a similar circumstance. None surfaced this time around—how come?

Read MoreCramer: Don't hold your breath waiting for more LBOs

Meanwhile, looking at single stock opportunities, Cramer suggested looking at Kroger (KR), a winner in the supermarket space; he thinks it will keep on winning. "I know shares have already rallied substantially year to date, but I think there's more upside coming," Cramer said.

"The stock still sells at just 14 times next year's earnings estimates, which I think is darned cheap when you consider that the company's got a 12 percent long-term growth rate," Cramer said.

"In fact, this company trades at a discount to the average stock in the S&P 500, yet, I think it has shown that it's a heck of a lot better than the average company."

Read More Cramer: 20% gain ahead in this stock

"Have the cloud-based software as a service stocks come down to the point where they're buyable again?" Cramer posed the question before talking with Marketo (MKTO) CEO Phil Fernandez.

Looking at recent results, "reported in late July, Marketo results came in substantially better than expected, with 60 percent revenue growth and a 51 percent increase in billings," Cramer said. "Also management raised its full-year revenue guidance.

However, it should be noted that Marketo is still not yet profitable, and the stock's trading at 8.8 times sales, which is not cheap, even for a cloud play.

Nonetheless, "I think the numbers are there," said Cramer. "If you're investing in this space, I wouldn't just look at profit. I would look at cash flow. And on "Mad Money" Fernandez said," we'll be cash flow positive in 2016."

In the Lightning Round, Cramer said Dow Chemical (DOW) acts well and it has a good yield while he wanted to see consistent earnings growth in Oracle (ORCL) before he could feel good about owning it.