August is the heart of sell-off season, Jim Cramer cautioned his Mad Money viewers Thursday. That means that nasty sell-offs like we saw today will happen and investors need to be prepared.

Cramer said there are many possible reasons for today's big decline in the averages. The disbanding of President Donald Trump's economic counsels is one reason, as is the possible departure of White House advisor Gary Cohn. Without Cohn, Trump's economic agenda, including tax reforms, could be in jeopardy.

Another reason could be the tepid earnings from Cisco Systems (CSCO) , which fell 4% on the news, and Walmart (WMT) , which declined 1.5%. Or it could be the continued decline in crude oil.

But Cramer said Trump's agenda is stalled because of Congress and the earnings of Cisco and Walmart weren't that bad, the stocks has simply run up going into earnings. As for oil, low oil prices are only bad for 6% of our economy but are great for the other 94% of us.

Cramer said what's really going on is that it's August, a time when trading is thin and big moves are likely. After the market's big run, doesn't it make sense to take some profits? With so much uncertainty in the markets, you simply cannot trust your fellow shareholders not to panic.

People are fretting over a 2% decline in Apple (AAPL) , an Action Alerts PLUS holding, but ignoring the stock's 36% gain so far this year.

That's why Cramer continued to recommend that investors raise some cash so they can be ready to buy the next time a sell off like today hits.

On Real Money, Cramer looks at what's ahead for this volatile month. Get his insights with a free trial subscription to Real Money.

Executive Decision: Box

For his "Executive Decision" segment, Cramer welcomed back Aaron Levie, chairman and CEO of Box (BOX) , the cloud storage provider with shares that are up 35% so far this year. The company recently announced a partnership with Google's (GOOGL) Cloud Vision to use machine learning to analyze images.

Levie explained that businesses have mountains of image data that they need to manually classify, tag and organize, but now Box can help them do that automatically and make that data searchable. Companies can even build entire workflows around their image data.

Photos and images are just the beginning, Levie added, as the same technology can be applied to video and audio files as well.

Levie said Box is 100% committed to the enterprise and has no interest in the personal space. Box aims to help companies save money and speed up their workflows, he said.

Finally, when asked about his outspoken comments about President Trump last week, Levie said that sometimes your principles need to override your business objectives and he's proud that so many business leaders are standing up for diversity and for what's right.

Cramer said that Box continues to have exciting technology.

Retail Earnings: Winners and Losers 

What's the takeaway from this quarter's retail earnings? Cramer said there are clearly two different narratives, those who are getting crushed by Amazon (AMZN) and those Amazon should be fearing.

In the loss column is L Brands (LB) , which again slashed estimates as the company battles the slow death of the mall. There are 1,100 Victoria's Secret stores in malls across the country and another 1,600 Bath & Body Works.

L Brands joins Dick's Sporting Goods (DKS) , Macy's (M) and Coach (COH) among this quarter's biggest losers.

But then there are the surprise winners, mainly Target (TGT) and Walmart (WMT) . Walmart is perhaps the only retailer with enough clout over suppliers to give Amazon a run for its money. Cramer said after the company's Jet.com acquisition, it's now a two-horse race between Walmart and Amazon and Walmart has the bigger physical footprint by far.

Cramer and the AAP team are standing pat on their oil positions with Apache Corp. (APA) , Cimarex Energy Co. (XEC) , and Magellan Midstream Partners LP (MMP) . Get in on the conversation with a free trial subscription to Action Alerts PLUS.

Cramer Catches Up on His Homework

In his "Homework" segment, Cramer followed up on a few stocks that stumped him during earlier shows. He said that Insys Therapeutics (INSY) has too many problems and investors need to just say no.

Cramer said that remote learning provider 2U (TWOU) is a one-stop shop for digitizing education and has the potential to be a tremendous growth story, but the stock needs to cool off.

Finally, Cramer said that Pattern Energy (PEGI) , with its 6.9% dividend yield, is a good one and he likes this green energy provider.

Lightning Round

In the Lightning Round, Cramer was bullish on Juno Therapeutics (JUNO) , Merit Medical Systems Inc (MMSI) , Medtronic (MDT) , Mazor Robotics (MZOR) , Intuitive Surgical (ISRG) , Bemis (BMS) , Novartis AG (NVS) , XPO Logistics (XPO) , Prudential (PRU) , Chubb (CB) , Travelers Companies (TRV) , Coupa Software (COUP) and Sirius XM Radio (SIRI) .

Cramer was bearish on Halliburton (HAL) , Landstar System (LSTR) and Chicago Bridge & Iron (CBI) .

Off the Tape

In his "Off The Tape" segment, Cramer sat down with Shantanu Gaur, co-founder and chief science officer of the privately held Allurion Technologies, a company pioneering non-surgical alternatives to fight the obesity epidemic that has affected millions of people around the globe.

Gaur explained that Allurion has developed a capsule that can be swallowed with a cup of water at a doctor's office. Inside the capsule is a balloon that is then slowly filled with water and remains in your stomach for up to four months before it ruptures and passes through your body.

While inflated, however, the balloon makes patients feel full and therefore eat less. The product is already approved in Europe and the Middle East and is awaiting FDA approval here in the U.S.

Gaur said there's a huge outcry for safe and effective, non-surgical and "frictionless" alternatives to surgery and that's what Allurion is providing.

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At the time of publication, Cramer's Action Alerts PLUS had positions in APA, XEC, MMP, AAP, GOOGL.

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