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Jim Cramer's 'Mad Money' Recap: Where's the Rally?

When asked about the future of solar power, Hughes said he expects the industry to grow to 50 gigawatts in the next few years, which will include both smaller distributed projects as well as utility-scale generation installations. He said solar largely helps in peak power situations today. But as storage technology gets better, solar will also be used for baseline power.

Cramer reiterated that First Solar is a very inexpensive stock that tells a great story.

Going Deep

When so many stocks are on the decline, there tends to be deeper trends at work, Cramer told viewers. While many liken the selling in the markets today to the dot-com collapse of 2001, Cramer said to really understand what's going on investors need only look back as far as 2011 through 2013.

Cramer explained that in the low-growth environment of the past few years, the influence of growth-oriented momentum funds has grown dramatically. These money managers didn't care about earnings, they only cared about growth and piled into names like Netflix (NFLX), Amazon.com (AMZN) and Tesla Motors (TSLA).

But now the investment bankers have honed in on this lucrative segment of the market and have been offering up every fast-growing software, cloud and biotech name they can find. With so much supply, the momentum segment has all but collapsed, taking a big chunk of the markets with them.

Additional, the lockup period for many deals that have already come public have expired, causing a flood of sellers. Cramer said investors can look for these momentum names to continue to get pounded as this voracious selling runs its course.

Lightning Round

In the Lightning Round, Cramer was bullish on Encana (ECA), Ecolab (ECL), Kindred Biosciences (KIN), Radian Group (RDN), Genworth Financial (GNW), Royal Bank (RBS) and Banco Santander (SAN).

Cramer was bearish on Diana Shipping (DSX) and MGIC Investment (MTG).

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