It's easy to understand why the market declined on Tuesday morning-all of the negative news in the media gave investors plenty of reasons to sell stocks! However, the good news is that Jim Cramer knows that investors have more common sense than that.

"Despite all the positives out there, the news backdrop has become deeply gloomy, with everything that happens being interpreted as astoundingly bad for stocks. When you look at it that way, it's easy to understand this morning's nasty decline," said the "Mad Money" host.

Sure enough, investors quickly recovered from amnesia and remembered that consumers are spending again and the economy is doing well, which ultimately led to the market rebounding and closing up.

Yes, it's hard to remain bullish when energy and financials are doing so terribly. After all, they do represent 25 percent of the S&P 500 (^GSPC).

Regardless of the gloom dwelling in the newspapers on Tuesday, investors weren't brought down by the pessimism.

"I'm already crying about how bad things are. Watch them focus on IBM (IBM) and jam Netflix (NFLX) into some lonesome little box when it is a hugely positive story, even if it is a cult stock," Cramer said.

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2014 was a big year for initial public offerings (IPOs), with more deals rendered since 2000. However, it seems that this year the IPOs have hit a stalemate and haven't had much to offer.

"I bet a big thaw could be coming later this week in the form of a new offering that could get people very excited about IPOs again," said Cramer.

The "Mad Money" host is excited about the IPO for Box, a cloud- based online storage company that is expected to go public this week at $11 to $13 a share. Cramer thinks that investors should call their brokers and try to get in on the deal at any price at or below $18 a share.

Even if you can't get in on the deal, he still thinks it might be worth buying in the aftermarket at the right price.

What does Cramer like most about this company? Not only are the numbers and valuations relatively inexpensive, but it is run by the co-founder, chairman and CEO Aaron Levie. Cramer thinks he is a visionary who will make this hot stock one to bet on.

Another stock that Cramer has his eye on is the select-service hotel chain La Quinta (LQ). As he has been saying for months, hotels, restaurant and travel stocks are the biggest beneficiaries to low oil prices.

However, for some reason La Quinta has been flat during a time that the "Mad Money" host thinks it should be roaring higher. He based this logic on the fact that 95 percent of its rooms are located in the U.S., thus shielding it from weakness stemming from Europe or China.

La Quinta currently trades at 31 times earnings with a 30 percent long-term growth rate, making it fairly inexpensive. It is currently the cheapest publicly traded hotel stock on the market, trading at 10 times 2015 EBITDA, while the average is 13.5 times for hotel and lodging stocks. In fact, Cramer wouldn't be surprised if it had a 20 percent gain up to $25 at these levels.

"We know for sure that the collapse in oil prices won't really hurt La Quinta, and that makes me want to buy this hotel chain at a nice discount to where it should be trading," said Cramer.

Though La Quinta and Box are good news for the market, there a few red flags that Cramer is seeing which could signal trouble ahead. Hence, the "Mad Money" host thought it was a good time to take a closer look at the CBOE Volatility Index (^VIX), also known as the VIX. It's the gauge for measuring the level of fear in the stock market.

To gain insight, Cramer turned to Mark Sebastian, a technician and founder of OptionPit.com. The technician pointed out that last week the VIX broke out above $20, indicating that investors are expecting a higher than average amount of volatility.

"The action in the VIX is reflecting the fact that the market is no longer as safe and reliable as it used to be. It's become much more of a roller coaster," Cramer said.

The charts, according to Sebastian, indicate that a nasty selloff is in the near future. However, have no fear-in Cramer's opinion a European based pullback generally creates a good buying opportunity for investors.

"If Sebastian is right and we do get a broad based pullback, then I need you to stay calm and use the weakness to do some buying, because the U.S. economy is in good shape here," Cramer added.

Read More Cramer: Buckle up! VIX signaling major turmoil

On Tuesday morning, Baker Hughes (BHI) and Halliburton (HAL) reported earnings. These are two spectacular oil companies that are trying to merge. And to boot, they reported on what Cramer described as terrific quarters.

Though both companies were optimistic, they were aware that oil has been cut in half for 2015. They confirmed that there is still a significant amount of drilling happening with large programs initiated worldwide, thus providing an optimistic long-term view.

This commentary echoed that of Schlumberger (SLB) on Friday, which caused it to rally to $81 from $76.

However what caught Cramer's eye is something that he thinks will weigh in heavily for the future of oil. All three companies made it clear that they still continue to drill on their best properties in the U.S., and the only way they can meet obligations is to generate more cash flow. The way to generate more cash flow is to produce more, not less, oil.

Delta (DAL) also reported a strong quarter with monster revenues, piggybacking from the price of oil. This was generated due to strong customer traffic, in Cramer's opinion, due to lower gasoline prices. After all, lower fuel costs mean lower travelling costs for consumers.

The airline plans to pay down debt and return money to shareholders and is prepared to profit from lower prices of oil-making it a real winner from the windfall.

"The losers? The domestic oil companies who have to pump like mad just to stay in business."

Read More Cramer: The hot commodity opportunity of low oil

In the lightning round, Cramer continued to look for the next stocks that could be an opportunity when he gave his take on a few caller favorites:

Perrigo Pharmaceutical (PRGO): "I think it's a bad cold and flu season, and I think Perrigo's stocks should be doing better. I also like all the different optionality it has with all the different possible takeovers. I want you to own it."

PDL Biopharma (PDLI): "We've got so many great growth biotechs that we have been profiling on the show, I'm going to have to say don't buy."

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