Jim Cramer can see all of the chaos happening around the world right now, and there is just too much investor complacency going on for his taste. In fact, he doesn't want to buy anything.
And while the "Mad Money" host is a big fan of buying stocks on a dip, what happened in the market on Monday is far from a dip, in his opinion.
"Look, I believe that dips are good buying opportunities, but do you mind if we at least get a dip first? There's a lot of insanity in this tape, specifically the insane level of complacency that buyers exhibited toward the other markets around the world this very morning," Cramer said. (Tweet This)
So, what are these signs of complacency that Cramer says have led to insanity in the market?
Most investors actually thought that Greece was really negotiating in good faith. Who the heck gave them that idea? To think that the Greek government would agree to any deal that didn't wipe out all of its debt is pure insanity to Cramer.
The kick-the-can, middle-ground approach has been a ridiculous failure. The largest sign of complacency to Cramer was the fact that people thought that a deal could have been put in place, even though both the Germans and the Greeks clearly stand on separate sides.
Also, did people really think that Puerto Rico wouldn't matter? There are investors out there who have spent a fortune buying bonds in Puerto Rico, and many hedge funds borrowed money to buy them. That means there is plenty more pain ahead; Cramer always says that it is the margined hedge funds that cause the most pain.
It is important to note that this list of warning signs does not mean that the U.S. is headed into another Lehman Brothers situation. That was systematic risk, but this is earnings risk and geopolitical risk.
However, Cramer recommended that investors at least wait for a real dip before buying. He is siding with prudence on this one.
After a hideous day on the markets on Monday, it seems to Cramer that Greece will ultimately default on its debt and leave the euro, causing the entire global economy to feel as though it is in chaos. What the heck should investors do?
"I say you buy some very special biotechs that have refused to come down until now. That's right, I think you use this marketwide selloff as an opportunity to pick up the speculative development stage biotech names that haven't had a price break in ages," the "Mad Money" host said.
Why speculative biotechs?
Because these are red hot stocks that don't typically come down, unless there is a marketwide selloff like the one that happened on Monday.
"I suspect that there are going to be some big declines here, and I think I have the ones that will bounce back the hardest when all the weak hands fold," Cramer said. (Tweet This)
Cramer's three favorites of the group are Receptos, Radius Health and Alder Biopharmaceuticals. All three of these speculative growth biotechs have the ability to drive their stocks higher, regardless of the economic environment.
Another stock that has powered through the headwinds of Europe and China is Nike. The sports clothier reported last week and totally knocked it out of the park, posting a 16-cent earnings beat from an 83-cent basis. It reminded investors just how much of a powerhouse it is.
How the heck did it pull this off with such a difficult backdrop?
First, Cramer loved management's flawless execution and take-no- prisoners strategy. He also attributed its success to technology, as Nike spends more money on research and development than many tech companies out there.
So, while it may seem that all was lost and nothing is right in the world right now, Nike's spectacular quarter and strong growth in China and Europe remind investors that there is still hope. Nike is such a strong brand, that Cramer is a buyer of this stock at these levels because he thinks it has a lot more room to run.
Another stock that Cramer recommended investors to pay attention to is G-III Apparel Group. This is a little clothing company that has been tearing up the market, up 43 percent year-to-date.
What is the secret to its success?
This is a company that is similar to a roll-up, meaning it acquires castoff brands from other companies and then quickly reinvigorates them. Despite the fact that the stock has had amazing performance, Cramer thinks it could have a lot more room to run because it always seems to be underestimated by Wall Street.
Ultimately Cramer puts this stock in the same bucket as Valeant or Allergan, which are famous for successful acquisitions. It is the amazing sports connection with NFL apparel and great set of brands that Cramer expects to crush Wall Street's earnings estimates.
However, Cramer knows that it is not easy to spot a bright spot floating around as and opportunity for investors.
"But there were some bright spots—you just had to be willing to look for them, rather than tearing your hair out or curling up in the fetal position on the floor and crying like a baby," the "Mad Money" host said.
Cramer was stunned Monday when he saw the whopper of a pending-home-sales number and learned that the U.S. is officially back to 2006 housing levels. The difference this time is that the loans used to buy these homes are expected to produce very little default, if any. Basically, the people buying homes these days were totally overqualified, even before they get a mortgage.
But the best news out of all of this, for Cramer, is the impact that these numbers will have on companies like Home Depot andLowe's. Especially considering that the average household still spends below the average of what it once did. When he heard these wonderful housing numbers, he realized this would no longer be the case.
In the Lightning Round, Cramer gave his take on a few caller favorite stocks:
Wisconsin Energy Corp: "Wisconsin Energy currently trades at 3.75 percent. When that gets to 4 percent, and I think it will, then pull the trigger—but not until then."
Molson Coors Brewing Co: "If we get a transaction, TAP is going to be able to be a big beneficiary. They will be able to buy something that has to be sold because of a big transaction that maybe involves BUD. So I want you to hold on to it."