Stocks have rallied hard recently, but charts indicate that there is more room to run.
To gain further insight, Cramer consulted with technician Mark Sebastian. He is the founder of OptionPit.com, a colleague of Cramer's at RealMoney.com and an expert on the CBOE Volatility index, also known as the fear index.
Many investors use the VIX to measure a perceived volatility in the S&P 500. In the heart of the Brexit sell-off, Sebastian advised Cramer that the market would come roaring back. He nailed the bounce on the morning of the exact day it occurred.
Sebastian made the call by comparing the S&P to the VIX. Normally he expects the VIX to fall when the S&P rallies. Three weeks ago, Sebastian noted that as the S&P continued its vicious decline, the VIX actually went down with it. That was a textbook sign to him that the sell-off was ending.
"He believes that the bull still has legs, at least for now. Why? Because everything is behaving normally," Cramer said.
A little over two weeks ago, the biggest break-up of all break-ups finally went into effect. Cramer views Danaher as one of the best run conglomerates in the world. It split itself up into two smaller businesses in order to be more easily understood and appealing to money managers on Wall Street.
Danaher spun off its industrial division as a new company called Fortive on July 2, while the company's life sciences, diagnostics, dental and environmental businesses remained under Danaher.
"Now that Danaher's break-up is in the rearview mirror, I'm sticking with my view that the new Danaher is the way to play it," Cramer said.
While the stock has rallied recently, he thinks it could still have room to run. He recommended waiting for its first earnings report that will be released on Monday. As for Fortive, he thinks it does have potential but it's not the kind of industrial that he would buy in the current environment.
In the Lightning Round, Cramer gave his take on a few caller favorite stocks:
Abiomed Inc: "I have always felt that those guys would get the takeover bid, but it went to St. Jude. It's probably a little too expensive, but they've got a great mouse trap. As does Edwards Life Sciences, which is too big to be acquired."
Harman International Industries: "This company got hurt by the strong dollar and I think it is actually very cheap at $5.5 billion. But I've got to tell you, I understand that the quarters have been rocky. Dinesh [CEO] has to deliver."