Search Jim Cramer's Mad Money trading recommendations using our exclusive Mad Money Stock Screener and watch Jim Cramer's Mad Money Post Game video exclusively on TheStreet.com.
NEW YORK (
TheStreet) --"It was terrific that we bounced off the lows today, but we're not out of the woods yet," Jim Cramer warned the viewers of his
"Mad Money" TV show Tuesday, as he encouraged them to stay defensive and stick with high-yielding stocks and a healthy portion of gold.
Cramer said there were a few bright spots in today's action, with stocks like
Johnson & Johnson
(JNJ), along with
Chipotle Mexican Grill
(AAPL), a stock which Cramer owns for his charitable trust,
Action Alerts PLUS
, all ending higher. But in order to have a sustainable rally, Cramer revisited to his "rally checklist" from a few weeks ago.
1. Leaders back from vacation. Cramer said while President Obama is speaking later this week, there is still no leadership in Europe.
2. Bank stocks stabilizing. No end in sight here, said Cramer, especially with fresh lawsuits being filed.
3. A bottom in tech. Cramer said a bottom is likely another two weeks away for this troubled sector.
4. More mergers. Cramer noted that there's been some, but not nearly enough.
5. Lower stock and gold prices. Prices are lower, but also not nearly enough to sustain a rally.
6. European banks raising equity. No, no progress here either, said Cramer.
7. Lower oil prices. Cramer said the price of Brent crude is still far too high.
8. China stops raising interest rates. There's still no all-clear signal from the Chinese yet, noted Cramer.
9. Euro gets a makeover. Solutions to fix the Euro are still illusive, said Cramer.
10. More new highs. Some defensive names are making highs, but not the high-growth names the market needs.
So with little to no progress on this list, Cramer said there's no way the markets can sustain any meaningful rally.