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Cramer's been concerned about the market for a while and has told viewers to watch the price action carefully. Well, now it might be time to act if you haven't already, he said.
"If you have big profits, ring the register," Cramer said. "If you're already in cash, sit tight."
With militants taking over Iraq's second-largest city, Cramer is concerned about the effects on oil and how the U.S. will react.
"So what will it be? Airstrikes? Drones? Soldiers? Boots back on the ground in Iraq? That's uncertainty writ large. And if the market hates anything it's uncertainty," Cramer said.
Iraq has been the cause of not one, but two bear markets, he pointed out -- Saddam Hussein's invasion of Kurait in 1990 and the U.S. invasion of Iraq in 2003.
Even if this current storm blows over, Cramer still expects oil prices to spike, "easily" increasing by 10%, which would act like a tax on the U.S. economy.
He suggests sitting on the sidelines for now.
Break Up Bob Evans
Continuing with his long list of companies that could benefit by breaking themselves up, Cramer turned his sights to Bob Evans Farms (BOBE - Get Report), the sleepy restaurant operator that has 561 locations in 19 states, mostly focused in the midwest.
Cramer said Bob Evans already has an activist investor, Sandell Asset Management, nipping at its heels to unlock value for shareholders. How? It turns out that Bob Evans also has a frozen foods business that looks very similar to the hot commodity we know at Hillshire Brands (HSH). Cramer said that using a Hillshire valuation, Bob Evans' frozen foods biz could fetch as much as $600 million.