Jim Cramer's 'Mad Money' Recap: 10 Reasons the Market Is Falling

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NEW YORK (TheStreet) -- The markets are heading straight down, Jim Cramer said on "Mad Money" Monday after a hideous day on Wall Street. Cramer said it doesn't matter whether the companies themselves are doing good or bad, the markets are sending everything lower.

Why the sudden decline? Cramer offered up 10 reasons the markets are skittish:

1. Weak employment. Cramer said the markets are fretting Friday's labor numbers. Two bad reports in a row and it's game over.

2. Recession stocks. Cramer said the safety stocks that many investors turn to are losing ground, leaving them no place to hide.

3. Cult stocks. Even the "cult" stocks with sky-high valuations are feeling the heat.

4. Retail. Where have all the shoppers gone? First we thought it was a shift from soft goods to hard goods, then hard goods to online. Now we have no idea where they are.

5. Aerospace. Investors are abandoning the aerospace stocks, even though there's little to no evidence of a slowdown.

6. Our government. It's clear the shutdown cost Americans big time, and with continued worries over Obamacare, food stamps, unemployment and the debt ceiling, Cramer said, it's clear our government remains totally out of touch.

7. New Fed chief. Cramer said the markets need a steady Federal Reserve, but with a brand new chair that is proving difficult.

8. Emerging markets. The slowdown in the emerging markets is proving severe and the turmoil is being felt around the globe.

9. Commodities. Commodities are collapsing as the markets fear a sudden halt in China.

10. Earnings are meaningless. Investors are totally ignoring even the best earnings and sending stocks lower regardless.

What should investors be buying then in such a difficult market? Cramer said he's still gravitating to the high-yielding stocks that offer at least a little protection against the continued selling.

Off the Charts

In the "Off The Charts" segment, Cramer went head to head with colleague Tim Collins over the chart of Boeing (BA), which reported a strong quarter but its cautious guidance sent shares down 15% from their highs just two weeks ago.

Looking at Boeing's daily chart, Collins now sees the stock's gap lower to $131 as a new ceiling for the stock. He felt that $122 to $125 a share will be the critical range and falling below $122 would indicate further weakness, perhaps as low as $110 a share.

Collins also took aim at the commodity channel index, or CCI, which is currently less that -200, an incredibly oversold condition.

Looking at Boeing's weekly chart, Collins pointed out a similar decline in August 2011, with a gap lower and a very oversold CCI. That weakness led to a second leg lower, just as Collins fears today.

But while Collins took a wait-and-see approach, Cramer said the fundamentals at Boeing remain strong, with airlines flush with cash. Cramer said he'd be a buyer of Boeing into continued weakness.

Executive Decision: Jack Hartung

For his "Executive Decision" segment, Cramer spoke with Jack Hartung, CFO of Chipotle Mexican Grill (CMG), which just delivered a surprise 9.3% pop in same-store sales.

Hartung commented on Chipotle's marketing efforts, which include sponsoring a new online video series entitled Farmed and Dangerous that pokes fun at the traditional food chain. He said Chipotle doesn't believe in marketing around gimmicks and promotions but would rather create curiosity and get people thinking about where their food comes from.

When asked why Chipotle doesn't just create an inexpensive menu using cheap ingredients, Hartung said that in the short term cheap ingredients may be appealing, but over the long term Chipotle's strategy of food with integrity is better for animals, crops, family farms and the health of consumers. By charging a fair price for great food, Chipotle has seen strong returns, he added.

How does Chipotle create its success? It's not by skimping on the food, Hartung said. Instead, the company creates efficiencies by having small restaurants and a simple menu with not a lot of marketing.

Cramer said he remains a huge fan of Chipotle.

Lightning Round

In the Lightning Round, Cramer was bullish on Alcoa (AA), Wendy's (WEN), LyondellBasel (LYB), Medivation (MDVN), Kinder Morgan Energy Partners (KMP) and Sirius XM Radio (SIRI).

Cramer was bearish on Baidu.com (BIDU) and Atmos Energy (ATO).

No Huddle Offense

In his "No Huddle Offense" segment, Cramer opined on the irony that has become China. He said that analysts everywhere are in a footrace to determine what, exactly, is going on in China, leaving a slew of stocks in their wake.

Take MasterCard (MA), a stock that went from most-loved to most-hated in a nanosecond on fears that a slowing China would dent earnings.

Weyerhaeuser (WY) has become another troubled stock, even as the company admitted that China is slowing, but added that growth in Japan has more than made up the gap.

Then there's Yahoo! (YHOO), a stock that's doubled on its Chinese exposure to Alibaba, and Google (GOOG), a stock that was up even with no China exposure at all.

Confusing, indeed.

Off the Tape

In his "Off the Tape" segment, Cramer went looking for those missing retail shoppers by sitting down with Katia Beauchamp and Hayley Barna, co-founders of the privately held BirchBox, an online destination for beauty and personal grooming products.

Beauchamp explained that shoppers come to BirchBox, fill out a short profile about themselves and their needs, then pay $10 a month to receive samples of products that are selected just for them. Shoppers can then return to the site and quickly buy the items that appeal to them.

BirchBox provides a seamless experience, Barna added, guiding shoppers from discovery to purchase and replenishment, all the while giving her company multiple revenue streams.

When asked why shoppers wouldn't just sample at BirchBox and buy their products elsewhere, the co-founders said BirchBox has tons of content and a very effective loyalty program to keep customers coming back for more.

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

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-- Written by Scott Rutt in Washington, D.C.

To email Scott about this article, click here: Scott Rutt

Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

At the time of publication, Cramer's Action Alerts PLUS had a position in GOOG.

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