Monday marked another day of stocks tumbling, though hopes rose during a short-lived rally. The Dow Jones industrial average (.DJI) fell 223 points, or 1.35 percent and the S&P 500 (.SPX) fell 31 points, or 1.65 percent.
Jim Cramer once again reiterated that investors face a treacherous market, with fears that stocks exposed to the travel and leisure sector could go even lower. He noted that there is a genuine sense of panic, because the market was not able to stand its ground after the Federal Reserve indicated that there is no hurry to raise rates, we got a good China export number for September, and there were even rumblings of peace in Ukraine.
So what do we need to do in order to have a sustained rally?
Cramer provided a 10-step to-do list of what needs to be addressed in our environment before a bull market can stay, starting with the containment of Ebola, a resolution of the ISIS crisis and oil prices finding their footing.
Read MoreCramer's 10 steps to a market rally
The CBOE Volatility Index (VIX), otherwise known as the VIX or the fear gauge, will tell investors about the mood of the market after last week's sell-off. Cramer turned to a resident VIX expert Mark Sebastian, founder of OptionPitTrading.com.
Last Friday the VIX surged above 20 for the first time in ages. It typically rallies when the S&P goes down, but according to Sebastian, the fact that it crossed above 20 is a sign that the market is bottoming out because it has panicked.
Sebastian thinks that the current rally in the volatility index could be a sign of 2010- and 2011-like territory. He expects the VIX will break above 25 before the market bottoms, which means that investors could have another day of bear markets before Sebastian recommends it is wise to start buying.
Though plenty of stocks are in bear territory currently, Cramer said that doesn't mean that investors should throw in the towel and sell everything. Historically, the plummeting price of crude oil is good news for restaurant stocks—every dollar that people do not spend at the gas pump is redirected to lunch and dinner. Even the declining price of staple crops like wheat and corn are a good thing for restaurants, as they can boost their margins and save on costs.
But since Cramer thinks this is a treacherous market, he doesn't want investors to put all of their eggs in one basket with restaurant stocks. So what should we look for?
Investors need a company that has an ace up its sleeve and the potential to instantly unlock value for shareholders. Cramer recommends looking for a restaurant play that can break itself up and make shareholders money in the process.
Cramer thinks he should be taken seriously when he says that the restaurant chain Jack in the Box has a lot going for it, and could have a tremendous upside if management breaks up the business. He thinks Qdoba could go much higher in valuation if Jack in the Box were to spin off Qdoba as a separate publicly traded company, much like in 2006 when McDonald's spun off Chipotle.
"Memo to Jack in the Box, you can unlock a tremendous amount of value if you simply break up your business—I don't care if you sell Qdoba, or merely spin off a minority stake in the chain via IPO, either way you'll be doing your shareholders a favor," Cramer added.
Even without the breakup, he still thinks this stock is worth buying into the weakness that has overcome the market due to Ebola, and despite the decrease in oil prices.