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NEW YORK (TheStreet) -- "Yeah, it's bad out there," Jim Cramer admitted to his Mad Money viewers Tuesday. "And maybe the markets head lower from here." But the markets might also rebound, just as they did the last time.

To illustrate his point, Cramer held up a copy of The Wall Street Journal dated Oct.14, 2011, with the headline Market Nears Bear Territory. Back then the markets had fallen 17% from their April highs on fears that European countries such as Spain were plunging the world into recession and were close to default. Sound familiar?

Cramer noted that the Dow Jones Industrial Average opened at 10,655 the morning that paper hit newsstands. But despite the doom and gloom conveyed in just about every article, 10,655 was the lowest the Dow would see. Oct. 4 was the market bottom.

Back then, no one was predicting a bottom, Cramer noted, only adding to the fear and panic -- just as they are today. But today it looks like the U.S. dollar may have peaked and the U.S. economy is strong. As we learned those years ago, the U.S. isn't completely beholden to events overseas. We might, just might, be able to bounce from these lows and head higher.

Cramer's Shopping List

It's time to get your shopping list of stocks ready, Cramer told viewers, because unlike your fantasy football draft, you get to pick up your favorite stocks anytime the price is right.

Cramer said it's important to remember that stocks are pieces of paper tied to the fortunes of individual companies, and not to the fortunes of China or Brazil. That means when the markets put them on sale, real opportunities are being created.

Case in point: Celgene(CELG) - Get Report, a stock that was trading at $139 a share six weeks ago, but is a totally different story today, trading at a scant $115. Celgene previously tested lows at $113, and at that level would be trading at just 15 times 2017 earnings. That's a bargain.

Then there's Facebook(FB) - Get Report, a stock Cramer owns for his charitable trust, Action Alerts PLUS. Facebook traded as low as $83 last week, and is valued at 21 times 2017 earnings. If that seems pricey for you, Cramer said the markets will probably knock it down to be even cheaper in the days to come.

While Cramer wasn't a fan of Kroger(KR) - Get Report, which doesn't have a lot of growth, he was bullish on Kimberly-Clark(KMB) - Get Report with its 3.5% yield.

As for GoPro(GPRO) - Get Report and Tesla Motors(TSLA) - Get Report, Cramer said he's taking a pass because these stocks are expensive at any price.

There's no hurry in this market, Cramer concluded. Once you have your shopping list ready, wait for the price to fall to where you want it using limit orders.

Bad Timing

While there's never a good time to raise interest rates, right now would be a particularly bad one, Cramer told viewers, as he sounded off against those in the Federal Reserve who think otherwise.

The Fed's job is to cool the U.S. economy when it gets too hot, and that job is already being done by the slowdown in China and the fears of a worldwide recession that could follow.

What's the cost of waiting, Cramer asked? Housing starts still aren't back to pre-recession levels, he noted, and rising beef and chicken prices are well outside of the Fed's control.

There simply isn't a compelling reason to raise right now, despite what you may have heard on TV or read in the papers.

Off the Charts

In the "Off The Charts" segment, Cramer went head to head with colleague Carly Garner over the direction of oil, given today's sharp 9% decline to $45 a barrel.

Looking at a weekly chart of West Texas Intermediary (WTI) oil prices, Garner noted that only recently did 40% of the largest of speculators finally sell their positions. Long-term contracts fell from 300,000 to 200,000 in the latest downturn, which ultimately is a positive sign because much of that buying power will be getting back into the markets soon.

Garner then looked at a longer-term monthly chart of WTI, complete with relative strength and stochastic indicators. She noted that during the lows of 2009, oil also tested levels in the high-$30s, then retested those levels before rallying 300% over the next few years. The same pattern appears to be happening now.

Lightning Round

In the Lightning Round, Cramer was bullish on Apple Hospitality REIT(APLE) - Get Report, Omeros(OMER) - Get Report, Halliburton(HAL) - Get Report, Schlumberger(SLB) - Get Report and Wendy's(WEN) - Get Report.

No Appetite for Zoe's

What should investors do with the stock of Zoe's Kitchen (ZOES) , the once-loved but now-hated stock that's fallen 25% from its peak in late July? Cramer said Zoe's has a lot going for it but it's far from flawless, which makes it too risky for this market.

The stock of Zoe's had tripled since its initial public offering in April 2014 as investors clamored for what was billed as the next Chipotle Mexican Grill(CMG) - Get Report. But on June 18, the first warning sign appeared -- the company's CFO abruptly resigned. Shortly thereafter, the markets turned sour, taking Zoe's along for the ride.

When Zoe's reported last Friday, investors initially celebrated the company's 1-cent a share earnings beat, its 30% rise in revenue year over year and its 5.6% pop in same-store sales. But this week the stock gave back all of those early gains.

Cramer said while the headline numbers were impressive, Zoe's is seeing a slowdown in traffic, with some of its existing stores not doing as well as its newer ones. That's unacceptable in a tough market, he said, and especially for a stock that trades at a whopping 30 times forward earnings. By comparison, Chipotle trades at just 18 times earnings, Popeye's Louisiana Kitchen (PLKI) at 13.4 times earnings and Bullafo Wild Wings (BWLD) at 10 times.

For those reasons, Cramer said he cannot recommend that stock.

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 FB.