Click here for an archive of Jim Cramer's Mad Money recaps.

Editor's Note: Tonight we are testing a new concept to get the Mad Money Recap to you quicker by publishing installments live during the show. We invite you to bookmark TheStreet.com to make it easy to return for the next update. Please let us know what you think of this new approach by sending an email to the editor.

"After weeks of the markets going higher, it's time to a reality check," Jim Cramer told the viewers of his "Mad Money" TV show Monday.

Image placeholder title

He said that it's important to pause and review your investment theses to see if they're still pointing higher, or signal a downturn.

According to Cramer, there are five threats to the bull market. Four of which he said are under control, but one still keeps him up at night. These threats include:

1. Unemployment Spike. Cramer said employment must continue to head in the right direction, with jobless claims headed downward. He said there needs to be progress every week.

2. Obama's market view. Cramer said Obama's been doing a great job as of late by taking on Wall Street without demonizing it. This needs to continue, he said. Obama has to realize that he has the power to take the markets lower and needs to continue to promote it, he said.

3. Signs of Inflation. Nothing can stop an economic rally cold like inflation, but fortunately we're not seeing any signs of it, said Cramer. Cheaper housing, slumping autos and the collapse in banking should keep this recovery killer at bay.

Image placeholder title

4. Dip in Bank Stocks. The rally in banking will only continue as long as the big money is buying in, he said. Fortunately all of the recent secondary offerings made by banks were priced right, and investors are continuing to make money, he added.

5. Higher Gas Prices. Cramer said this is the threat that worries him most. The rally in retail and restaurants, along with consumer confidence, is all predicated on lower gas prices, he said. If prices continue to climb, they will strangle any hopes of a recovery.

Cramer said none of these threats merit the selling your stocks, and he's still be a buyer on pullbacks like today. But he is keeping an eye on all five of these factors, with a special close eye on the price at the pump.

Underpriced IPO

P/>How do big investment firms lure weary investors back into the market?

Cramer says its with underpriced IPO's. That's why he thinks investors need to call their brokers and get in on the IPO of

Digital Globe

, which is set to trade under the ticker DGI later this week.

Cramer said Digital Globe is a satellite imaging company much like

GeoEye

( GEOY), with satellites designed to sell imagery to the military, big oil,

Google

(GOOG) - Get Report

and GPS providers. The company's IPO is set to price between $16 to $18 a share and could come as early as Wednesday night.

Cramer said the deal's underwriter,

Morgan Stanley

has the incentive to underprice the deal to boost investors' and companies' confidence in the IPO process.

Recent IPOs such as

Rosetta Stone

(RST) - Get Report

,

Bridgepoint Education

(BPI) - Get Report

,

Changyou.com

(CYOU) - Get Report

and

Mead Johnson Nutritional

(MJN)

all followed a similar pattern. They were up an average of 20% the day after the IPO and are up 43% year to date.

But Cramer said there are other reasons to like Digital Globe as well. There are high barriers to entry in the imaging business and little competition, which is why GeoEye just off its 52 week high, he said.

Cramer said Digital Globe however, is a better company.

Cramer said even assuming a worst case scenario, including a delay in the launch of the company's new satellite, lower sales, higher expenses, increased depreciation and a 30% tax rate, he still sees the company trading at just 12 times 2010 earnings, or a 15% discount to GeoEye.

Cramer said he thinks Digital Globe could see $27 a share, and is willing to pay up to $20 to $22 a share for the IPO.

Smooth Sailing

Cramer spoke with Richard Fain, chairman and CEO of

Royal Caribbean Cruises

(RCL) - Get Report

, to find out how the company's self-proclaimed "miserable" quarter turned out to be good news for its stock.

Fain explained that while the company's sales were about half of that of last year, the stock was so oversold and investors expected things to be so bad, that the reality of a stabilizing market was welcome news. He said Royal Caribbean is now is a great position to do well as the global economy recovers.

When asked how the company is dealing with such obstacles as the swine flu and liquidity issues, Fain explained that overreaction to the swine flu was the right thing to do, and that those fears are now quickly calming. Regarding liquidity, Fain said his company took action two years ago to avoid the crises other companies are facing today.

Fain said Royal Caribbean is seeing good visibility and is in the fortunate position that its assets can move to where the consumer demand is located.

Cramer said he's be a buyer of Royal Caribbean under $12 a share.

Mad Mail

Cramer told a viewer that

Pepsi

(PEP) - Get Report

will not be going up anytime soon as it makes a bid for its bottlers, but he would not selling the stock at these levels.

Cramer told a second viewer that it's time to sell

Freeport-McMoran

(FCX) - Get Report

if you have a profit. "It'd be a sin not to lock in that gain" he said.

Finally, Cramer told a viewer to absolutely, positively not to buy

JDS Uniphase

(JDSU)

, a stock he said should never be bought.

Lightning Round

Cramer was bullish on

Hansen Natural

( HANS),

Riverbed Technologies

(RVBD)

,

Lowes

(LOW) - Get Report

,

Schlumberger

(SLB) - Get Report

and

Transocean

(RIG) - Get Report

.

He was bearish on

Robert Half International

(RHI) - Get Report

,

Ashland

(ASH) - Get Report

,

Freeport-McMoRan

(FCX) - Get Report

,

McGraw-Hill

( MHP),

Moody's

(MCO) - Get Report

,

Sallie Mae

(SLM) - Get Report

and

Basic Energy Services

(BAS) - Get Report

.

Check out the latest edition of

"Cramer's Take onHeadline Stocks" on Stockpickr.

Image placeholder title

P/>Want more Cramer? Check out Jim's rules and commandments for investing by

clicking here

.

Read more of Cramer's Mad Money Lightning Round insights

.

For "Mad Money" performance statistics and other links, check out Mad Money stats

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.