Even with housing gaining strength, 2016 has been a terrible year for some of the largest players in the furniture space. Shares of Restoration Hardware, Williams-Sonoma and Wayfair have all been crushed.
When Cramer dug a little deeper, he found that while consumers are buying furniture, they aren't shopping at the same stores or even online like they used to.
"I recommend staying on the sidelines with all three of these furniture stocks until we know that they have gotten their acts together," Cramer said.
Cramer's top pick in the furniture space is J.C. Penney, which called out the furniture space as one of its strongest categories. With CEO Marvin Ellison running the show, Cramer thinks Penney is one of the best furniture bargains out there.
Investors have also worried about Walgreens' plan to acquire Rite Aid, particularly since the federal government has become more aggressive in blocking deals on antitrust grounds this year.
However, a big development last week made Cramer think Walgreens has a better chance of moving forward with that deal.
Last week, a report from The Capital Forum stated that supermarket chain Kroger could be a potential buyer for overlapping stores that Walgreens and Rite Aid may need to sell. If this report is true, then Cramer thinks it could be the final hurdle before the Federal Trade Commission approves the merger.
"At this point you can win either way. It's terrific if the deal goes through, but if it falls through I think Walgreens will buy back a ton of stock, which should cause it to go higher anyway," Cramer said.
In the Lightning Round, Cramer gave his take on a few caller favorite stocks:
Lazard: "I would ring the register. This isn't a good call play, this is a slow-go growth stock with a 4 percent yield in an area of investment banking that is pretty strong. But not a call play. I would at least cut it in half. You don't need to play this one with calls."
Public Storage: "No, a 3 percent yield, it's starting to roll over. We don't need to do that. Real estate investment trusts, we are going to go away from that. It's not our pick. We like Ventas."