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This market isn't volatile, it's treacherous, Jim Cramer warned his Mad Money viewers Tuesday, after another wild ride on Wall Street that saw the markets open bullish, reverse course, only to close with another rally.

What happened Tuesday to cause the roller coaster ride? Cramer said the action was all about China. Rumors that the Chinese might slash auto tariffs, followed up an upbeat Presidential tweet sent the markets soaring, but after those reports seemed unfounded, stocks quickly reversed. Meanwhile, still other stories warned of a U.S.-led looming crackdown on Chinese hackers, a move that would certainly hamper any trade deal.

With all of the uncertainty, Cramer said he'd stick with broad secular growth themes, like the cloud. He said Splunk (SPLK) , which appeared on last night's show, is a winner, as is VMWare (VMW) and Workday (WDAY) . Cybersecurity is another long-term theme. Cramer liked Palo Alto Networks (PANW) , an Action Alerts PLUS holding, along with FireEye (FEYE) and CyberArk (CYBR) .

Outside of tech, investors can turn to healthcare, with names like Centene (CNC) topping Cramer's list. He also endorsed accidental high-yielding stocks like AT&T (T) , which now yields 6.7%.

For all of these names, Cramer advised buying in wide scales as stocks head lower. For those that can't stomach the volatility, Cramer said it's perfectly fine to sit on the sidelines or invest in a simple index fund.

Palo Alto Networks is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells PANW? Learn more now.

Cannabis Plays

The cannabis stocks are once again in the news after last week's announcement that Altria (MO) was taking a 45% stake in the Canadian pout purveyor, Cronos (CRON) . But does that make it the must-own name in the sector? Not so fast, Cramer told viewers. The cannabis market already has a kingpin, and it's Canopy Growth Corp (CGC) and it's U.S. partner, Constellation Brands (STZ) .

Cramer said Altria is a great partner to have. There's no other company on the planet that knows how to market a highly-regulated and morally-dubious product. But in this business, size matters, and Canopy is raking in $11.4 billion compared to Cronos' $2.3 billion. Use just about any metric, and Canopy is the clear winner, Cramer added. The company sells into all of the Canadian provinces, its leading in medicinal products and patents and it has 4.3 million square feet of licensed growth area, compared to 1.2 million for Cronos.

In the end, Cramer said the Cronos deal feels rushed. The company won't even receive the proceeds from Altria until early-2019 and by then, Canopy will have only extended its lead. 

Off the Charts

In the "Off The Charts" segment, Cramer checked in with colleague Rob Moreno to get some context and perspective on the market's recent volatile action.

Moreno turned to a long-term, monthly chart of the NASDAQ, going back to the beginning of the bull market in 2009. He noted that since then, the chart has been beautiful, trading in a narrow range from the lower-left corner to the upper-right corner in almost a straight line. That was until October's big 16% decline.

But Moreno noted that if you view the chart on a logarithmic scale, the 16% decline pales in comparison to the 19% decline in 2010 and the 25% declines in 2011 and again in 2015. In each of these cases, stocks quickly rebounded.

Turning to a weekly chart of the S&P 500, Moreno saw a ceiling at 2,800 and a floor near 2,600 points. The Dow Jones Industrial Average has a ceiling at 26,000 and a floor approaching 24,000 points. Based on this, Moreno felt the markets were attempting to bottom and were poised for a rebound.

Executive Decision: Masimo

For his "Executive Decision" segment, Cramer sat down with How Kiani, CEO of Masimo (MASI) , a leading maker of patient monitoring equipment. Shares of Masimo are up 30% for the year and 286% over the past five years.

Kiani said that opioids remain a leading cause of death in our country and Masimo's new patient monitoring equipment aims to eliminate the "dead in bed" phenomenon where patients fall asleep and never wake up. There is still much work to be done in eliminating the use of opioids, he said, but Masimo is providing patients with solutions to help.

Masimo monitoring equipment is being used in nine of the top ten hospitals in the country, Kiani said, and is being used in operating rooms and intensive care units across the nation. Their equipment can monitor multiple parameters, including oxygen, carbon dioxide, glucose, brain functions and more, all while reducing the clutter of multiple machines.

Lightning Round

In the Lightning Round, Cramer was bullish on Shutterstock (SSTK) , PayPal (PYPL) , Mastercard (MA) and Take-Two Interactive (TTWO) .

Cramer was bearish on Zillow (Z) , GreenSky (GSKY) , Cypress Semiconductor (CY) and Electronic Arts (EA) .

No Huddle Offense

In his "No Huddle Offense" segment, Cramer opined on whether the tech sector has found a bottom. He said it's important to remember how we got here in the first place.

Tech's decline began with Apple (AAPL) , after rumors circulated about slowing demand. That news was followed by weakness in Advanced Micro Devices (AMD) and Nvidia (NVDA) , as well as a peak in flash memory and DRAM chips.

With all of this weakness, its easy to presume that all of tech is rolling over, Cramer said. But it's not. Cisco Systems (CSCO) remains fantastic. Tech Data (TECD) , which appeared on last night's show, is outstanding. Cybersecurity continues to be strong, as does the data center, autonomous driving and lots more.

This is why we pick individual stocks, Cramer reminded viewers. There are winners and losers in every sector.

PayPal, Apple and Cisco are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells PYPL, AAPL or CSCO? Learn more now.

Cramer and the AAP team are looking at how end-of-the-year market volatility is affecting their portfolio. 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.

Over on Real Money, Cramer is calling it like it is, and sharing his perspective on the markets. Get more of his insights with a free trial subscription to Real Money.

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