Today was a textbook example of why panic gets you nowhere, Jim Cramer announced to his Mad Money viewers Tuesday. But that doesn't mean that the bottom has arrived, at least not yet.

Cramer said the weak hands have indeed been flushed out of the market and stocks do appear to be building a base. But the causes of the decline, which started last Friday, are still with us and they still very much matter.

On Friday, investors began to worry about rising interest rates and potential wage inflation as a result of the strong jobs report. Yesterday's decline was largely caused by the VelocityShares Daily Inverse VIX (XIV) ETN. While the problems caused by these insanely-levered ETFs seem to have been resolved, at least for now, the underlying interest rate issues remain.

Over on Real Money, Cramer says the inverse VIX exchange-traded note should never have existed in the first place. Get more of his insights with a free trial subscription to Real Money.

Cramer continued: The good news is that we still have a strong economy, coupled with tax cuts and deregulation. The markets also have a history of rebounding after oversold conditions like we have now. So while we may not be entirely out of the woods just yet, there are good reasons to believe things will be improving soon. 

Cramer and the AAP team are already putting their cash to work, and are adding shares of Honeywell International (HON) - Get Honeywell International Inc. (HON) Report . Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts PLUS.

Off the Charts: FANG

In his "Off The Charts" segment, Cramer checked in with colleague Bob Lang on the five-year anniversary of FANG, Lang's acronym for Facebook (FB) - Get Facebook, Inc. Class A Report , (AMZN) - Get, Inc. Report , Netflix (NFLX) - Get Netflix, Inc. (NFLX) Report and Alphabet (GOOGL) - Get Alphabet Inc. Class A Report , formerly Google.

Since creating this high-growth cohort, shares of Facebook are up 537%, Amazon is up 441%, Netflix has soared 967% and Google, up a mere 183%. THat's compared to just 78% for the S&P 500 over the same time period.

Lang remained a fan of all four names, noting that the bears have taken swipes at these stocks many times over the past five years and each time, they came out even stronger. Cramer said this time, is likely to be no different, which is why his charitable trust, Action Alerts PLUS, has Facebook as their largest position.

To look at the charts and read a full recap of Lang's analysis, don't miss, see  Tech Giants FANG Bite Back: Cramer's 'Off the Charts'

Selloff Strategy

In a special "Selloff Strategy Session," Cramer took questions from viewers. He told a caller that if he's investing for the long-term, it's still best to be all in on stocks, but if you need the money in the next five years, you may want to take some profits and raise some cash.

When asked why the market suddenly turned on a dime, Cramer said after Trump's tax cuts, the markets simply got overheated and were due for pullback.

After a caller asked what to do with his daughter's 529 college savings plan, which was now fully funded, Cramer said you only need to win once, so it's time to lock in those gains. Don't roll the dice if you don't have to.

Finally, when asked about trading strategies in a volatile market, Cramer dispensed the same advice as always. Take profits on big up days like today and put those profits back to work on big down days like yesterday.

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No-Huddle Offense

In his "No-Huddle Offense" segment, Cramer opined on Apple (AAPL) - Get Apple Inc. (AAPL) Report , the Action Alerts PLUS holding that soared 4.1% today despite a barrage of negative analyst chatter.

Cramer reminded viewers that Apple is at its best when the analysts are at their worst. Case in point: the iPhone 6s cycle a few years ago, when analysts also predicted Apple was doomed and revenue would only decline from there.

But unlike the "top" a few years ago, Apple's revenues are growing, not shrinking, and sales in China are expanding, not contracting. Cloud services are also on fire and Apple is about to repatriate a ton of overseas cash. Yet despite all that, shares trade at just 11.2 times earnings.

The analysts were wrong then and they're wrong now, Cramer concluded, which is why you need to own, and not trade, Apple.

Lightning Round

In the Lightning Round, Cramer was bullish on U.S. Concrete (USCR) - Get U.S. Concrete, Inc. Report , UnitedHealth Group (UNH) - Get UnitedHealth Group Incorporated Report , Atlassian (TEAM) - Get Atlassian Corp. Plc Class A Report , AeroVironment (AVAV) - Get AeroVironment, Inc. Report and ConAgra Foods (CAG) - Get Conagra Brands, Inc. Report .

Cramer was bearish on Granite Construction (GVA) - Get Granite Construction Incorporated Report , Ford Motor (F) - Get Ford Motor Company Report , Chesapeake Energy (CHK) - Get Chesapeake Energy Corporation Report and Medicine Company (MDCO) - Get Medicines Company Report .

Executive Decision: Core Labs

For his "Executive Decision" segment, Cramer spoke with David Demshur, chairman and CEO of Core Labs (CLB) - Get Core Laboratories NV Report , the oil service technology company that's only seen its shares decline 2.2% during the recent market plunge.

Demshur explained that Core Labs is all about efficiency, allowing oil producers to produce more oil, from fewer wells, for longer periods of time. In unconventional wells, where break-even used to be $80 a barrel, that number has fallen to just $40 a barrel.

When asked is Core Labs is taking market share, Demshur explained that they're actually creating market share, by developing new technologies that increase oil recovery rates by up to 50%. With oil inventories very lean, the drilling activity will only increase from current levels, Demshur predicted.

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At the time of publication, Cramer's Action Alerts PLUS had a position in HON, FB, GOOGL, AAPL.