Things got heated on Monday when St. Louis Fed President James Bullard called out Jim Cramer, stating that Cramer's "cheerleading" for lower rates is "unsavory."
"Unsavory, wow! I have my hands full just trying to be sweet, now I have to be savory, too?" the "Mad Money" host said.
Cramer explained that has been hard on Bullard this year, because he has wanted to raise the federal funds rate for years now, even as the economy has been too weak to do so. He also said he has not been a cheerleader for this market, as he hasn't liked the market for ages.
Rather, Cramer said he is a cheerleader for regular working Americans and higher interest rates would hurt Main Street, not Wall Street. Additionally, Cramer is not against a rate hike. On Friday, Cramer stated that as along as China is not teetering and Europe is on firmer footing, then he will be in favor of the Fed tightening.
"Right now, though, I am seeing deflation all over the place, including most of the commodity complex, and without minimum wage hikes at the state and local level, I think wages in this country would not just be stagnating, they would be declining," Cramer said.
In fact, Cramer did not trust the market rally on Monday. Somehow, all of the indicators that would normally be bad news for the averages ended up being good news, which was a red flag to Cramer that this rally is not sustainable.
Monday's market activity prompted interest rates and oil prices to rise, the dollar gained strength versus the , financial stocks rallied and biotech stocks were crushed.
"How did these things suddenly become good? Because this market is trying to find a base, trying to find its footing where it doesn't go down every day and where segments that have been hit hard can attempt to rally," the "Mad Money" host explained.
So what does all of this irrationality in the market mean?
It is making investors uncertain and driving people away. In fact, when the market makes no sense to a guy like Cramer, it makes him want to sell into strength, not buy, he said.
"As long as stocks don't act rationally, as long as the inputs produce the wrong outputs, I'm going to urge you to have one foot out the door at all times," Cramer said. (Tweet This)
Just as the decline on Friday proved to be unsustainable and based on nothing, Cramer warned that Monday's advance will most likely be unsustainable for the same reasons.
One example of an unsafe stock was on Thursday when La Quinta, a company that Cramer has liked for a long time, was hit with disaster—ultimately causing Cramer to throw his entire bull thesis for the stock out the window.
La Quinta Holdings is the select-service hotel chain with about 870 locations. The "Mad Money" host has recommended the stock multiple times, largely because of the positive commentary from the company's long-time CEO, Wayne Goldberg.
That was until last Thursday, when Cramer was hit with two jarring surprises from the company.
First, the CEO announced he was stepping down effective immediately. La Quinta did not cite a real reason for the exit; Goldberg simply said he had fulfilled his goals and it was a good time to look for new opportunities.
The second blow came when La Quinta cut its full-year financial guidance for the second time in two months. It had a vicious downward revision of its revenue per available room, guiding to a range of 3.5 to 4.5 percent from 6 to 7 percent.
On top of that, the company cut its earnings before interest, taxes, depreciation and amortization forecast to a range of $393 million to $400 million, down from $398 million to $404 million. It blamed weaker-than-anticipated hotel demand during August and September.
"At this point, I have to tell you that I think it's not too late to sell La Quinta. In fact, if you own this stock my recommendation is that you run—don't walk—away from it," Cramer said. (Tweet this)
Cramer reminded investors on Monday that when high-quality stocks go lower, they get cheaper. That is exactly how he feels about Allergan, the acquisitive drug company formerly known as Actavis.
Allergan's stock has been slammed recently, but Cramer thinks the story behind this company could be even better today than it was before. The FDA recently approved Allergan's new anti-psychotic drug, Vrylar, and the company has lined up even more acquisitions to grow its business, including the $300 million AqueSys deal earlier in the month.
Biotech stocks were hit hard on Monday when a tweet from presidential candidate Hillary Clinton said that the price gouging by drug companies should be stopped, and would lay out a plan to stop it. If Clinton becomes president, should drug companies like Allergan be worried?
To find out, Cramer spoke with Allergan CEO Brent Saunders. The CEO said, "All of our intelligence says that it is going to be very hard for Hillary, or any other candidate, to really have a profound impact on drug pricing. That being said, we have to take this very seriously because it creates a lot of pressure on the system." (Tweet this)
The price of gold has also been headed downhill for years now and is now trading below where it was when the financial crisis hit the U.S. And considering the Fed's recent decision not to raise rates and the weakness in emerging market countries, Cramer thinks it could be pretty hard to make the case that gold is about to bottom.
However, the "Mad Money" host has always been a believer that some gold exposure in a portfolio can act as an insurance policy. Gold tends to go up in moments of inflation and economic turmoil, while stock prices go down. And even though inflation seems like a distant worry right now, Cramer still thinks it is a good idea for investors to diversify.
That is why he spoke with Mark Bristow, CEO of Randgold Resources, a company Cramer considers to be the best-run gold miner in the business. Randgold has operations in western and central sub-Saharan Africa, and despite declining gold prices, the company managed to deliver a solid quarter last month.
"There's every indication that the supply of gold is going to shrink, which will tighten up the market… And that will support the gold price and then any other impact, you will drive that gold price up; so you know I am really positive about the gold price," Bristow said.
In the Lightning Round, Cramer gave his take on a few caller favorite stocks:
Twitter: "I like Twitter, my charitable trust owns it. I think at this point the stock has come down so much, I think that if it went down 4 or 5 more points there would be a lot of companies wanting to buy it. But I don't know who the CEO is going to be."
Lululemon: "I am in agreement with Morgan Stanley. I thought that the selloff was overdone and it happened while I was out in California. I took a look at the stock this weekend and was surprised that it was down so low. So were they, and I think they are right."