Many investors breathed a sigh of relief when the Federal Reserve announced it would leave rates unchanged on Wednesday. But Jim Cramer says the market isn't in the clear yet, and he's got a game plan prepared.
"We still need to face the U.K.'s big vote next week on whether to leave the European Union," the "Mad Money" host said.
Cramer was pleased that the Fed recognized that employment in the U.S. only grew by 38,000 jobs last month. It clearly knew that the economy is only slowly growing, and rate hikes shouldn't be on autopilot.
The uncertainty surrounding a Brexit was palpable in the market on Wednesday, and it prevented stocks from heading higher after the Fed announced its decision.
"I think more people are worried about this British vote than they would be otherwise, because they sure weren't worried a few weeks ago," Cramer said.
So, with the Fed out of the picture and oil and a Brexit in scope, Cramer will remain cautious until oil drops $3. That is when the market will fall 3 to 5 percent ahead of the vote in the U.K.
"That is when you put some of that mad money to work in higher yielding all domestic equities. That is the game plan, you just have to be ready to implement it," Cramer said.
Amid a thick political atmosphere this year, Cramer also had his eye on companies that could benefit the most from an increased amount of political ad spending.
In his analysis of the companies located in the swing states, Nextar Broadcasting Group arose. The company owns a broad portfolio of local affiliates for Fox, ABC, NBC and CBS. It is also set to acquire Media General for $4.6 billion.
The combined company's reach and scale could be an obstacle for FCC approval; however, Cramer thinks it could ultimately be approved. To learn more about what could be ahead, Cramer spoke with Nextar's chairman and CEO Perry Sook.
"In terms of professional producers of local video, local content; in the markets we operate in there may be three or four competitors and not a dozen or more. So I think that we are now seeing private equity come back in to back some of these startup companies, and I think it speaks to the health of the business at the local level," Sook said.
There is no other stock that is more controversial to Cramer than Valeant Pharmaceuticals. And with the stock down more than 90 percent from its all-time highs last year, he decided to take a look at its core assets to see if the beaten-down stock could be a play on value.
Valeant was thrust into the public eye last fall amid accusations of outrageously high drug prices and other controversial business practices. With the stock closing at $23 on Wednesday, some investors have begun to speculate that it is too cheap not to buy.
"Even if you forget about the reputational issues, the dangerous debt load and the loss of credibility, Valeant has a pretty negative outlook for all three of its core businesses," Cramer said.
That is why Cramer says investors need to stay away from Valeant's stock. Instead, buy its competitors such as Allergan and Johnson & Johnson.
In an exchange with Lululemon Athletica founder Chip Wilson on Wednesday, Jim Cramer was advised by Wilson that he has set the bar too low for the company.
On CNBC's "Squawk on the Street," the discussion began with Cramer stating that he thinks Lululemon's management has done a good job, and ended with Wilson advising Cramer that he has let the company off the hook by setting the bar too low.
"I did think Mr. Wilson's position toward my view was ill-advised. I try to set the highest bar there is, a virtual pole vault, when other seek only the high jump," Cramer said.
And with the retail cohort struggling for months, Cramer pointed out that there are still segments of the industry on the rise.
Ollie's Bargain Outlet Holdings came public in July last year, and is up more than 30 percent for the year, and almost 50 percent since the IPO.
Ollie's is an off-price retailer that sells name brand merchandise at a 70 percent discount to a department store. It has 187 locations in 16 states, and management believes it can expand dramatically to 950 locations spanning the U.S.
Could this be the next great regional-to-national retail story?
To find out, Cramer spoke with Ollie's chairman and CEO Mark Butler, who confirmed the transparency of the business.
"What we do is we tell the truth … what it is, is a bargain. What we attempt to do is buy major name brands, bring it back to our store and sell it direct to the consumer," Butler said.
In the Lightning Round, Cramer gave his take on a few caller favorite stocks:
Freeport-McMoRan: "This thing can't be killed ... they cannot stop the thing! You know, I think it goes to $13. Now with coal it goes to $11. I'm going to put myself out there. A two-for."
Altria Group: "We have done fabulously with Altria. The problem with Altria is that I don't like to recommend the tobacco companies, but if I had to buy one I would do Altria or its sister company Philip Morris."