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NEW YORK ( TheStreet) -- If the market's going to have a sustainable rally, we need to see 10 things happen, Jim Cramer told his Mad Money viewers Monday after a failed rally attempt earlier in the day. Without these 10 things, however, Cramer said the general sense of market panic will likely continue.
Cramer explained that first, the Ebola outbreak must be contained. Next, the selloff needs to extend past just the industrial names and affect all stocks. Along those lines, the speculative stocks such as Tesla (TSLA - Get Report) and GoPro (GPRO - Get Report) need to find their footing. Buying these names now would be a mistake, Cramer added.
Fourth, oil prices need to stabilize to make the energy stocks attractive, as do the technology stocks that have been rocked ever since Microchip Technology (MCHP - Get Report) sounded the alarm that demand in China continues to deteriorate.
Sixth, Cramer noted that the sanctions in Europe need to end and peace needs to come to Ukraine. With so many stocks depending on Europe, he said, no rally can continue without it. Companies need to be able to beat the estimates and raise their guidance, he added, something that would be a godsend for the financial group.
Eighth on Cramer's list is a stabilization of the technicals. There has been tremendous pressure in the Russell 2000, he said. With so many investors keeping an eye on the charts, the retail, housing and chemical names won't rally until the charts say they're ready.
Finally, Cramer said China needs to implement dramatic stimulus and ISIS must be contained in the Middle East.
Until the markets start to check off these 10 things, Cramer said, any rally should be seen as an opportunity for investors to lighten up on their holdings.
Off the Charts
In the "Off The Charts" segment, Cramer went head to head with colleague Mark Sebastian over the direction of the markets, using the charts of CBOE Volatility Index, known better by its ticker symbol, the (VIX.X) , and comparing it to the S&P 500.
Sebastian noted the markets have been following a similar pattern over the past few years. Anytime the VIX surges over 20, the S&P falls to its 100-day moving average and the buyers return. But is this time different?
Sebastian thinks so, saying this time not only is the stock market breaking down but also the world markets, including commodities. In essence, there's nothing investors can count on at the moment.
Looking at a chart of the last six months, Sebastian also noted the S&P has already fallen below its 100-day moving average with almost no support, and even its 200-day average doesn't appear to be offering much resistance.
Both Sebastian and Cramer believe the market's current actions feel more like 2010 and 2011, where the markets had a good deal more to fall and the VIX spiked much higher than 20. Sebastian said he'd reevaluate after the VIX spikes above 25.
Buy Jack in the Box
With the markets continuing to put stocks on sale, Cramer said there still are some names worth owning, one of which is Jack In The Box (JACK - Get Report) , a stock that's up 140% since Cramer first recommended it in June 2012.
Not only is Jack one of the largest burger chains, it also encompasses Qboda Mexican Grill, a fast-growing Mexican food chain with 600 locations, Cramer pointed out Jack could unlock tremendous value by selling or spinning off the Qdoba brand, he noted.
But even without a spinoff, breakup or sale, Cramer said there's still lots to like about Jack In The Box. The company is completing a major re-franchising effort, taking its percentage of franchised locations from 25% to 80%. That has given the company dependable cash flow, greater visibility into its earnings and allowed it to buy back $277 million worth of its own stock, nearly 10% of its float, since the beginning of the year.
As for Qdoba, Cramer said that chain is seeing 7.2% growth in its same-store sales and can easily grow from its 600 locations to over 2,000 nationwide.
Jack In The Box can still be bought into any market-induced weakness, Cramer concluded.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer said with the Ebola scare now front and center in investors' minds, it's time to change the outlook on a host of stocks.
Cramer said just a few weeks ago he recommended the cruise stocks on the thesis that lower fuel costs would be a huge tailwind for the group. But with Ebola sidelining travelers, this group, which is already in decline, likely has further to fall. In addition, the airlines, casinos and indeed everything related to travel is taking one on the chin.
"I didn't see this coming," Cramer admitted. But as the facts change, it's important to get in front of them and change your thinking quickly.
Cramer was bearish on Vivint Solar (VSLR - Get Report) , First Solar (FSLR - Get Report) , Himax Technologies (HIMX - Get Report) , Delta Air Lines (DAL - Get Report) and Morgan Stanley (MS - Get Report) .
Riding the Pono
In a special interview, Cramer sat down with rock-and-roll icon Neil Young to discuss his latest venture, Pono Music, which aims to bring true high-definition music to the digital age.
Pono is a privately held startup that just raised over $6 million on Kickstarter.com, a crowdfunding Web site. Young explained that the portable music player only does one thing -- bring the feeling back to the music you listen to.
Young said people who listen to music can't help but smile when they listen to Pono, and he is already in talks to bring the technology to cars including Tesla's.
While the first round of music players is already sold out, Young said the company is offering certificates that people can give to the music lovers in their lives for delivery in January and beyond.
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.
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