"This is a really Dickensian, 'Tale-of-Two-Cities'-style market," the "Mad Money" host said. "It is at once the best of times if you own the banks and the techs or the industrials, and it's the worst of times if you own the drug stocks, the consumer packaged goods plays or anything retail. This dichotomy plays out every single day."
Cramer pointed to Citi Research's twin downgrades of Macy's and J.C. Penney's stocks to "sell" from neutral ratings. Citi's analysts cited the department store chains' lack of strategic initiatives to differentiate themselves from competing retailers.
"Citi says that J.C. Penney is withering, that they've cut expenses to the bone — no, through the bone — [and] they need to add the expenses back," Cramer said. "The merchandise is not distinguished, the home goods have lower gross margins. There seems to be no way out."
As for Macy's, Citi said the retailer needs to be able to cut its 8 percent dividend yield.
"If that's the case, then there's not much reason to own the thing," Cramer said. "I thought the report was too downbeat and that CEO Jeff Gennette deserves a little more of a honeymoon than this. I mean, the guy's only been at the helm for about eight months. But this downgrade? It made me feel like time is running out."