There may be more choppy days ahead for the stock market, but things aren't as bad as many people think, Jim Cramer told his Mad Money viewers Tuesday, after the market rebounded from Monday's sharp decline. Investors still aren't sure whether we're in a trade war or a Cold War, Cramer said, but either way, the Chinese will need to make major concessions to end it.

China has been embracing capitalism for years, Cramer explained, and those privately-owned companies are the ones hurting most. When you build an export economy, you are by definition hostage to your trading partners. That means China has a lot to lose. As for the U.S., we have less to lose, as China's trade abuses have already decimated our manufacturing sector.

So why were investors so spooked Monday? Cramer said it's because investors were shocked that the U.S. has now labeled China as a currency manipulator for one. Second, bond yields plunged, which has traditionally been a signal that a recession is looming. Lastly, additional tariffs are thought to have a big impact on America's retailers.

But Cramer said that after the shock wears off, investors will realize that bond yields are low because foreign money continues to flow into the U.S. from overseas. They'll also see that many retailers have already sourced goods from outside of China and those that haven't will be able to bear the additional costs. 

Cramer and the AAP team are back to focusing on earnings. 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.

Panic Is not a Strategy 

Never underestimate some investors' ability to do really stupid things, Cramer told viewers. After China's new "currency manipulator" designation, some investors panicked and sold shares of Apple (AAPL) - Get Report , Facebook (FB) - Get Report and Microsoft (MSFT) - Get Report down big in after-hours trade Monday, only to lose their shirts at the market open Tuesday. That's why Cramer felt compelled to reiterate his rules for selling stock.

First, panic is not a strategy. Labeling China a "currency manipulator" is not a big deal, Cramer said, and shouldn't have been treated like one. The next rule, there will always be a better time to sell than in the middle of a selloff. Had these investors simply done nothing, they would have been far better off.

Cramer's third rule is that after-hours is like the Wild West, only without a sheriff. Much of after-hours trading is done by computers, and their logic will trump yours every time.

Fourth, Cramer said that investors must always check their emotions at the door. Discipline must be maintained no matter how bad things appear to be. Lastly, never sell everything all at once. No investor can time the permit perfectly, so selling, and buying, in stages is always the most prudent move you can make. 

On Real Money, Cramer says the bozos who sold Monday night could just have waited until Tuesday. Get more of his insights with a free trial subscription to Real Money.

Executive Decision: Etsy

For his "Executive Decision" segment, Cramer spoke with Josh Silverman, CEO of Etsy (ETSY) - Get Report , a stock that plunged more than 18% this week after the company reported earnings in the middle of market turmoil.

Silverman said despite the stock market's reaction, Etsy had a terrific quarter and is seeing solid growth thanks to new initiatives that are helping bring even more buyers and sellers together. One of those much-asked-for initiatives is free shipping. Free shipping is now expected by many buyers, Silverman said, and Etsy is helping to make that standard for all 2.3 million Etsy sellers.

Another initiative is a new advertising program for sellers that can help drive even more traffic to their Etsy stores.

When asked about their valuation versus their market opportunity, Silverman said it's very hard to build a marketplace that includes 43 million buyers and 2.3 million sellers, but once you have it, it's very durable and hard for competitors to enter the market and disrupt you.

Finally, when asked about their sustainability efforts, Silverman introduced Steve McDougal, co-founder and CEO of 3Degrees, a company helping Etsy offset not only the carbon footprint of their offices and data centers, but also the footprint of every package shipped to buyers. McDougal said 3Degrees helps vet and fund environmental projects that allow companies like Etsy say they're entirely carbon neutral. 

Off the Tape: Barstool Sports 

In his "Off The Tape" segment, Cramer sat down with Erika Nardini, CEO of the privately-held Barstool Sports, and former MLB baseball star Alex Rodriguez, founder and CEO of A-Rod Corp., to talk about the upcoming wave of entrepreneurial entertainment.

Rodriguez said his new podcast debuted at No. 1 on Apple podcasts thanks in part to the intense following of Barstool Sports. Everyone loves to hear a good comeback story, he said, and they have a wide breadth of guests so you never know who you'll hear next.

Nardini said that Barstool is now the 48th largest publisher in the U.S., bigger than ESPN Digital, The New York Times (NYT) - Get Report and many others, despite being one-hundredth their size. She said they're able to reach the next generation of listeners by being around people with fresh new ideas.

Rodriguez added that prime time TV is not going away, but podcasts offer a more intimate experience that helps teach, entertain and inspire listeners in ways that TV can't. 

Viewers Have Questions 

After a rocky two days, Cramer took questions from viewers to answer their most pressing concerns. When asked about Twilio (TWLO) - Get Report , Cramer said this company remains fantastic and he would buy more. He was also bullish on Take-Two Interactive (TTWO) - Get Report , which also doesn't have any China or tariff exposure.

Cramer said he prefers Micron Technology (MU) - Get Report over Western Digital (WD) - Get Report . He remained a believer in Boeing (BA) - Get Report over the long term, but said it's too early to buy shares now. He was very bullish on Symantec (SYMC) - Get Report .

Finally, Cramer told a viewer that pullbacks like this week are the perfect time for new investors to get into stocks and he remains a fan of buying household names that have strong dividend yields.

Lightning Round

In the Lightning Round, Cramer was bullish on eBay (EBAY) - Get Report , PayPal (PYPL) - Get Report , Mastercard (MA) - Get Report , Royal Caribbean Cruises (RCL) - Get Report , Norwegian Cruise Line (NCLH) - Get Report , FactSet Research Systems (FDS) - Get Report , Chegg (CHGG) - Get Report , Citigroup (C) - Get Report , Sherwin-Williams (SHW) - Get Report and NovoCure (NVCR) - Get Report .

Cramer was bearish on Funko (FNKO) - Get Report , Carnival (CCL) - Get Report , Hain Celestial Group (HAIN) - Get Report , Zynga (ZNGA) - Get Report , Electronic Arts (EA) - Get Report , General Electric (GE) - Get Report and EOG Resources (EOG) - Get Report .

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At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, FB, MSFT, TWLO, MA, C.