Mad Money

Cramer Remix: Stocks to buy amid the bloodbath

Cramer Remix: Stocks to buy amid a bloodbath

Last week was a big week for "Mad Money," as Jim Cramer interviewed many CEOs of big companies that have a hand in how business flows in the United States. That is why he decided to reflect back on the guests, and make the call on what stocks are a buy and which need to be on the watch list.

"Granted, the comments from CEOs of individual companies may not be all that pertinent in an environment where the bear roams freely. But the moment we decide not to pay attention is when we start missing opportunities," the "Mad Money" host said.

Cramer said the only caveat to his buy list is that none of these stocks should be bought if it is going higher. They should only be bought into weakness.

The first stock that can be bought is Verizon, followed by Yum Brands, Clorox, Paypal, Ford and Wells Fargo.

"Yes, this is a difficult moment, but there are high-quality stocks you can buy into weakness here," Cramer said.

A LinkedIn Corp. banner hangs on the front of the New York Stock Exchange in New York, U.S., on Thursday, May 19, 2011.
Michael Nagle | Bloomberg | Getty Images

And with the entire high-growth group stuck in the grips of the bear on Monday, Cramer also heard from many high-quality growth companies last week that he decided to make a few projections.

The most obvious growth stock to keep an eye on was Under Armour, because it just reported a strong quarter when it wasn't supposed to. Cramer thinks it is getting no credit for its huge investment in connected fitness devices, and it could represent a big annuity stream.

Other stocks on his watch list were Adobe, Salesforce, Fitbit, Live Nation and Flex.

"All of these stocks suffer from one huge concern — a total lack of faith that the future can possibly be as good as the past," Cramer said,

If that is what is driving stocks lower, it won't matter what Cramer says, the market is determined to bring them lower. So be careful, and keep these stocks on the watch list.

Cramer couldn't find many positive signs in the market on Monday, which is why stocks ended in the red at market close. And when he went back to look at his market-bottom checklist, he realized stocks were nowhere close to bottoming.

"The list reminds us, first, why we are selling off, and second, what could put an end to the pain," the "Mad Money" host said.

When Cramer checked up on the status of his market-bottom checklist, he even ended up adding to it instead of reducing it.

No. 1 was clarity from the Fed. The Fed is in a bind because as the economy has slowed but employment hasn't. The Fed is worried that the economy will overheat, but there is no overheating. Cramer needs to hear from Janet Yellen that her plan for multiple rate hikes is off the table, or there will be more pain ahead.

Cramer was disturbed by the lack of progress when he reviewed this checklist. In fact, he even decided to add a new item to the list:

No. 15 Credit issues must be resolved. There are oil companies all over the place saying credit has become more difficult to get. At the same time, there is fear about European banks and credit issues they may have. This potential credit crunch could turn into a real issue if not resolved.

"If we rally, you need to sell something, raise cash, and get ready for lower prices," Cramer said. (Tweet This)

Read More Cramer: We're nowhere close to stocks bottoming

Federal Reserve Chair Janet Yellen speaks during a news conference.
Jonathan Ernst | Reuters

While the market on Monday was a total bloodbath, Cramer doesn't want investors to forget that Friday was terrible, too. Friday's carnage all stemmed from the horrific forecasts of high growth technology stocks LinkedIn and Tableau Software, which caused anything related to mobile, social and cloud to go into a tailspin.

"The pin action from these two quarters was so alarming that I think it is very important for us to understand what went wrong here," the "Mad Money" host said.

Stocks like Splunk were obliterated simply due to guilt by association.

"These other companies may be doing just fine, but until we are sure the forced selling by troubled hedge funds is over, I think you need to avoid both groups. Just too risky," Cramer said.

Read More Cramer: What the LinkedIn disaster means to you

So far, this year has brought weak earnings, issues of valuation and stress in the oil patch. But unless the Federal Reserve provides clarity on where it stands with rate hikes this year, Cramer said it is going to be very hard for the market to find a footing.

"When you drill down, the proximate cause of much of these problems comes back to the Federal Reserve and its compulsion to raise interest rates into a tumultuous environment," the "Mad Money" host said.

Janet Yellen is slated to speak on Wednesday, and that is when Cramer thinks investors will realize just how important the Fed is to this market.

"There is so much that needs to go right for us to get a bottom in stocks, but I still think it starts with the Fed," Cramer said. (Tweet This)

So, stay tuned. Cramer thinks if Yellen gives clarity on Wednesday and confirms that the Fed will stay data dependent and it is too soon to raise rates — it could trigger the rally many have been waiting for.

Read More Cramer: Fed could spark a long awaited rally

In the Lightning Round, Cramer gave his take on a few caller-favorite stocks:

Allergan: "Allergan has come down a lot. It's a charitable trust name, Jack Mohr and I have been saying look we know that a lot of stocks are under pressure — this one, too. I think that it is a mistake to sell it. I think it is OK to buy it."

A.O. Smith: "If I am going to own an industrial right now, it's not going to be that one because I want to own a yield play. So I'm going to circle back to GE."

Read MoreLightning Round: It's a mistake to sell this