Mad Money

Cramer's checklist to end the Greece nightmare

Cramer: Greek deal might actually work

On Monday investors finally breathed a sigh of relief when they learned that talks between the Greek government and euro zone had finally reached agreement. But Jim Cramer wants to know—is this really the end of the Greek nightmare that has held our market hostage for so long?

And while Cramer didn't want to get into the nitty-gritty of the details, he summarized the meeting by saying that the Greeks blew it.

"They went for broke and got a terrible deal because, in the end, they wanted to be in the euro more than the Germans wanted them in the euro," the "Mad Money" host said.

The deal appeared to Cramer as though it contained enough provisions to make the Greeks heed all of Germany's demands and allow them to open their open banks. Meaning, it might actually work.

So does that mean we can wave the all-clear flag?

"You know my thinking. When you own stocks you are never out of the woods," Cramer said.

A pro-Euro protester holds a European Union and a Greek national flag during a rally in front of the parliament building in Athens, Greece, July 9, 2015.
Alkis Konstantinidis | Reuters

Plus, Cramer has some issues with this rally as he doesn't think everything should be going up. He views that as just being futures driven, which indicates to him that it's just a reverse of a selloff where every stock goes down even the ones that should not.

With this in mind, Cramer outlined the 10 steps that need to be taken in order for the Dow and the S&P to hit new all-time highs.

No. 1 Greece & Germany: The Greek government needs to agree to Germany's plan. At this point Cramer doesn't see that Greece has a credible backup plan. So he thinks the plan will pass.

No. 2 China: It's clear to Cramer that things were out of control in China, and investors have been able to rally recently because of the stopgap measures put in place by the Chinese government. He thinks that what Beijing may have created is an orderly decline of high-flying stocks. Thus, it needs to continue to have a more buoyant market.

No. 3 Chinese economy: Based on the higher Baltic Freight readings it is possible that China is growing. Either way, this economy needs a turnaround.

No. 4 Iran deal: Many investors may think that the deal is bad news, but Cramer thinks it could really help the global economy and that is what matters. Yes it's bad for oil stocks, but Cramer thinks it is already built into the price of crude. So while he isn't a fan of Iran, he does think the deal could help worldwide growth.

No. 5 Chill out, Fed: While the U.S. is one of the strongest economies in the world, Cramer reminded investors that it is not booming. A rate hike is necessary, but it doesn't need to happen in September.

No. 6: Chill out, dollar: The dollar needs to stop going higher, as the euro was killed again on Monday. It needs to cool off in order to prevent severe number cuts from companies.

No. 7 Bank earnings: Investors need to have a positive feel about the future of net interest margins when banks announce earnings, because banks are the biggest component of the S&P 500.

No. 8 Tech sector life: Cramer needs to see life in the tech sector, which is the second-biggest group in the S&P. He is hearing nothing but slowdown calls, courtesy of the Chinese weakness.

Read more from Mad Money with Jim Cramer
Cramer Remix: Forget Greece—consider this play
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No. 9 Bring back activists and takeovers: This action seems to have taken a break because of the recent turmoil. The more the merrier.

No. 10 Oil: Cramer wants to see oil either stay where it is, or go higher. This sector is too important to get crushed.

If all 10 of these come together, then Cramer projects that the market is headed to all-time highs. If only some of them are fulfilled, then he sees 2015 as a tug of war between the bulls and the bears.

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