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How should investors dip their toes into a volatile market? That was the question Jim Cramer pondered with his Mad Money viewers Tuesday. Cramer reminded viewers to never chase a big up opening such as what we we saw Tuesday. Wait for weakness, then pounce on stocks that offer dividend protection.

We're in capital preservation mode now that the Federal Reserve is raising interest rates, and that means looking for stocks that offer some yield protection during the big market declines.

Investors need to avoid big yielders in the oil patch, however, as those companies may need to issue more equity to survive. Likewise with companies like Caterpillar(CAT) - Get Report , that need a strong China, or Seagate(STX) - Get Report , which needs strong PC sales in order to thrive.

What should investors be looking for? Cramer suggested AT&T(T) - Get Report and Verizon(VZ) - Get Report , which may not offer a lot of growth but are well-run entities. He also gave the nod to General Motors(GM) - Get Report , which just boosted its dividend and increased its stock buyback.

Then there are stocks such as Tupperware(TUP) - Get Report , which is thriving in the ailing emerging markets, and real estate investment trusts including Ventas(VTR) - Get Report and EPR Properties(EPR) - Get Report , both with yields over 5%.

Lastly, Cramer recommended Cedar Fair(FUN) - Get Report  with its 6.4% yield.

Off the Charts

In the "Off the Charts" segment, Cramer went head to head with colleague Carolyn Boroden over the direction of the markets after last week's nasty selloff.

Boroden correctly predicted the market's top last year by noting the bull run between May 2000 and October 2007 lasted 91 months. The bull run between October 2007 and the market's most recent top in May 2015 was also 91 months.

But now Boroden noted the markets have been making a series of lower lows and lower highs, while falling below most of the key moving averages. Her next test for the markets will be the S&P 500 between 1,847 and 1,857, which is its floor of support, and also between 1,832 and 1,838.

If the S&P is able to hold those levels, Boroden felt a tradable bounce is likely. But, she cautioned, falling below those levels could trigger a massive selloff like those seen in the 2000 dot-com collapse and the 2007 financial panic. Based on those patterns, Boroden felt the selling might not stop until the market falls another 28%, down to 1,350 on the S&P.

Oligopoly Opportunities

Even in a lousy stock market there are still opportunities to be found, Cramer reminded viewers. For instance: oligopolies, those industries where only a handful of players peacefully coexist and rake in the profits.

The beer business is one such oligopoly, with the top five brewers controlling an astounding 84% of the U.S. beer business. Now that Anheuser-Busch InBev(BUD) - Get Report is buying SAB Miller and creating a truly colossal beer company, that means that rival Molson Coors(TAP) - Get Report is a buy, buy, buy.

Cramer explained that as part of the Miller deal, Anheuser will be forced to divest some of its brands on the cheap, and those brands are most likely to fall into the hands of Molson. Trading at just 22 times earnings, Cramer said he'd be a buyer into any additional weakness.

Another oligopoly is the can business, which is currently controlled by Ball Corp.(BLL) - Get Report , Crown Holdings(CCK) - Get Report and the privately held Rexam.

It turns out Ball is in the process of acquiring Rexam in the next few months, which Cramer said makes that company a buy, buy, buy because the additional leverage Rexam will provide will translate directly to Ball's bottom line. Shares of Ball currently trade at just 18 times earnings.

The Power of Broke

In a special interview, Cramer sat down with entrepreneur and Shark Tank panelist, Daymond John, to discuss his new book, The Power of Broke as well as the current state of the U.S. economy.

John said that people often think of being broke as "having nothing to lose." In reality, being broke is when you have the most to gain. Being broke, he said, is when you fail fast and fail forward. A large percentage of the most successful people are self-made, John said, and if he can do it, anyone can.

Turning to the economy, John said that things are changing. He said millennials don't go to the mall anymore, they buy from social media. They're also not afraid to work hard for things they believe in.

John said he's a believer in Facebook(FB) - Get Report and also in Verizon because it is the top wireless player in our increasingly wireless world.

Lightning Round

In the Lightning Round, Cramer was bullish on Exelixis(EXEL) - Get Report , Michael Kors (KORS) , International Paper(IP) - Get Report , BB&T Bank(BBT) - Get Report and Intuitive Surgical(ISRG) - Get Report .

Cramer was bearish on Phillips 66 Partners(PSXP) - Get Report and Broadcom (BRCM) .

No Huddle Offense

In his "No Huddle Offense" segment, Cramer opined on a few stocks he said the markets are getting totally wrong, and one it's getting right.

Cramer said that Bank of America(BAC) - Get Report , a stock he owns for his charitable trust, Action Alerts PLUS, delivered terrific earnings when it reported, yet the markets took shares lower by 1.5%. He said this bank is on the mend and the markets will be proven wrong over the longer term.

Then there's Dow Chemical(DOW) - Get Report , another Action Alerts PLUS holding. Cramer said this stock is paying you to wait for its merger to be completed, yet investors mistakenly link it to oil prices and send shares lower by the day.

Cramer also sounded off against the market's treatment of Delta Airlines(DAL) - Get Report , which is a gigantic winner from lower oil prices, yet still trades at just seven times earnings.

Finally, Cramer said the market got it right sending Tiffany(TIF) - Get Report shares lower. He said this company promised things would be getting better, then failed to deliver big time. Cramer said Tiffany shares deserve to be even lower than they are now.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

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At the time of publication, Cramer's Action Alerts PLUS had a position in BAC, DOW and FB.