Nasd nasdaq shrank. The midday surge was a short squeezed fueled rally. Too much selling at oncet and selling returned accelerating into the bell. Higher. Its was a hideous affair, tretry not xdfaover. Since alibaba becameco public, e isis square, collapse of oilq prices. Lp the recession, courtesy of russia. ÷ once again this is a market. The fed indicated there w3÷ no hard erased rates, i got that and a very good china export number that would turn the market around and we heard peace rummings in ukraine that willlp turnxd ukraine. We have a genuine sense of panic, co eone to get out ahead ofco others and a fuel somethin nasty is lurking up there that we dont know about. Some big bad event we dont see happen so rather than join the panic, tell you what would make it to buy and not sell. Fa unfortunately, its a checklist and for manyw3 investors, its i hard a checklist. First the ebola htoutbreak, itec must, so when the lead story in the wall street journal is ebola caselp putsni focus on safeguar and in the upper right hand corner of the New York Times saysc dallas nurse contracts ebola, we wont get a e1e1fabot. We cant. Falpe1lp these stories will reade1e1l l its easier to get thanw3 ebola. Ete1r International Volume fellco a staggering 40 ok according to a excellentcniok comparison piece out this morning from Wells Fargo Research if i canni get i. Airline stocks dropped and to use American Airlines it peaked 44 in june. All the way to 28hpd change but this is the daunting figure. Its still up 13 for the year. One source got it under control in late spring of 200lpxd 3 and group rallied hard butfa the te is under control and because of so manyt conflicting reports a so few safeguards and travel, itsxd reasonable to presume h rates can disappear. Again, threecoi] cavti yachts, a is not at the heart ofjf travel and there are many places to be itself and ebola and many other of the things i takelp down. We get news ofni another Ebola Health Care worker down and we could get bad oknews. We still have safe stocks out there close to the 52week highs. Thats not tenable people, to get ae1 bottom, there can be no place to hide in the genuine the safetyt stocks need to geu clobbered, too, and only thennr. Remember, this isjf an extensiv checklist. This is not something easily done. Third, we need speculation to be wrenched out and that seems toc happen now. We have the colt stocks talked about getting hammered likeo lcr tesla, netflix, go proandfa thao too, is essential for a okbotto. We saw a lot of that. Eye is in the tesla for navigation but tesla isntt ev golden. nr behind go nis7pro for ages and they reached thuknr extreme the fable bore and goat surfing shorts. The bore one, if you havent seen that, e1well, whatever, ame yourself. They are linking go pro to a ski accident. Normauz wouldnt care about oil going lower. Werent for ebola constraining travel butnr qq hedge funds fr chesapeake, devin,e1 anything frau ong sand deep water related and the chaos from the losses ii it. They arexd toxic beyond belief. Its fickle and not long lasting. These mlpnis areni in these different etf manys and the eft the clouds have to stabilize, they are part of a giant tech rex since this microu chip it has a techc food chain. Seasonable september is ilp gre month for the peoples republic that was ek brutal surprise tha took down the formally bulletproof sociallp media and Semi Conductor stocks. They are in free fall,co all of them. End to the sanctions with this russia and the west over ukrain7o cf1 o while t simultaneously, were willing to run a deficit into the actions. Not talking about unilateral both sides. This must happen because co770 takers. Many u. S. Internationals depend ont european sales. They are in free fall of the internationals that dependnie1 that. Those sales have have been coming around ina5xd lpautos, h look at without an end to the sanctions, the dollar stays strong, earnings get whacked, Interest Rates go lower, peace eitaauru apre. Seven, most of the reports have to come through with beats andn raises, not just inline numbers. This must happen when itt come toxd earnings butco beginning t cting relativelyco well. I wish they werent. I wish they were getting hammered ahead. Any sign oflp life from thisni bellwether grouplp could help t course of the bulls but you got to get all these. Eighth, the technical damage has to run its course. Were breaking support levels, that. This isfa causing tremendous pressure in the russell lpw3200 which is hideous. Same thing with the formally strong retailers, perhaps the worst given the low interest n rates is icy no bottom in the housing stocks. Again, that can belp thanks to europe. Well examine that tonight, ninth, china has to come out with a dramatic stimulus plan be bought. Without a rally looks like a worldwidet recession that over rises strength in the domestic economy. If you own the emerging market isis crisis has tonow some signs of being stopped baghdad. The potential fallni of baghdad setting up a terrorist stateni isis must bes7 contained. Now relentless selling can bring back a snap back like t cy before theq averages gave up goes. az line is clear. We need these ten boxes to be checked if were going to get i genuinely e1in r t hahp hc sustainable. Without thisxd checklist met, w can have a relief rally but merely a chance to lightening p and nothing else. Have i told you this market is treacherous . Tim ine1 florida, e1tim . Caller yes,xd hello, jim . Yeah, tim, how are you . Caller how are you codoing . Greetings fromokxd the beautifu florida keys and a beautiful hello toni2ymu from theok woode spoon and group down here in the middle of the florida keys. I like e1that. The best key lime in the world. Whats going on . Caller let me sayxnjust firt off, would a guestxd appearancen shark tank would be sow3 with your audio and visual type of effects. Im honored that you say that. Thats a great show. Im honored that you say that. Caller yes, all right. Caller yes, all right. My thoughts arey ut worldwide challenges and thd challenges withe1 credit and credit cfraud. 5right. Caller a company like black hawk because ixdxd teamed up wi data candy, wouldnt that be nice sir, weve beent behind bla hawk netwkj but we got to recognize all these stocks are pulling back and had a big run. Hawk is terrific and thann you forlp singling that out and tha you for your kind comments about the keys, our show÷d and sa tank. Paul in michigan, paul. Caller booya, jimmy. Booyaw3ni paul. Caller in the last couple weeks like theni restp,hju e mar7]p, the stocks just got hammered and i thought, you know, their acquisition of noble care, the swift dental implant company isc a good move. Followingnke announcement of samq going . The communications look, i thought thisxd was a terrific deal but you know what . When i look, what ive beeni] doing is going immediately and looking to see how much business companiesok have overseas becau if youre not predominantly american youll get hurt. They have a lot of business overseas andxdw3 lumpedni in th ges and going down. This, too, will end but not until we check off a lot of boxes. Lets golp to carry in florida, carry . Caller a sunny booya from the sunshine state. I could use that. Nail a 4 i]6yard field goal fux miami. Caller i love your book and the question that i haveq isc rs and about the ceo, what are your thoughts . I like look, i like fighters, maybe they are a little unconventional and hes a little unconventional but that stock at 26 is an issue place to be. Q att is getting killed. Att. Tmobile isok a goodbye but wak att. If that breaks 30 that will send the whole groupt down. Im interestegjez owning att here. Now you have the checklist to get a sustainable rally and co considerable. Without that,ni if we have anotr relief rally like we saw today, you know what, i would be nothsn more than cothat. Good chance to lightening xdup. ] mad money tonight. Will the wild ride continue or is fear itself the only thing to fear . I dont know. I dont know. Could jackxd in the box be read and shakes is up over 30 this year but couldxd fajitas and bu r burritosxd bring more . Stay withclcramer. Dont missok a second of ma money fopaw at jim cramer on fa cramer, hashtag mad tweets. Send jim an email or give usnr missed something . Zv head to mad b1lcmoney. Cnbc. Com. receptionist gunderman group. Gunderman group is growing. Getting in a groove. Growth is gratifying. Goal is to grow. Gotta get greater growth. I just talked to ups. They got expert advise, special discounts, new technologies. Like smart pick ups. Theyll only show up when you print a label and its automatic. We save time and money. Time . Money . Time and money. Awesome. Awesome awesome awesome awesome all awesome i love logistics. Tough day. What can the Cboe Volatility Index tell us about the mood of the market after this terrifying sell off . In the past its been a great predictors of bottoms and down drifts which is why tonight were doing a special monday edition of off the charts. Typically dont do that but we have to talk about this with the help our of vicks expert. Director at swan wealth advisors. Last friday as the averages got beaten to a bloody pulp, the vehicles that uses options prices to measure the i;x sunce genius surged above 20 for the first time in ages. The vehicles rallies but when it crosses above 20 many view that as a sign the market is bottoming out because it is panicked. In other words, once the vix shoots above 20 the bulls and the weak hands have been wiped out which means the decline can come to an end because panic is already sold. And you know what . When you look at the chart of the s p 500 versus the chart of the vix over the last two years, sebastian points out this rule of thumb has consistently held true. Every time the vix spiked above 20, there is your 20 level or spiked at all, its quickly pulled back and the s p 500 is off to the races, however, this is a big however, people, sebastian could be different. This time the spike might not signal the market is ready to rebound at all. Why is that . Simple, every other time the vix spiked in the last two years, Something Else happened. The s p 500 pulled back to the 100day moving average. This pattern played out exactly like clock work. The index will peak on the same day the s p many crossed and a day or two would pass and the vix would stall out for a couple days and the s p would rebound like crazy but this time the s p 500 broke down below its 100day moving average and instead of peaking, the vix kept climbing. Wow. S p continued to get pounded including today. In other words, the s ps support at the 100day moving average failed and thats not the only thing thats different. Sebastian says this spike in the vix coincides with the break down in world markets, precious metals, bond yields and panic everywhere not just the u. S. Stock market and it is panic. Seems quiet but panic. Sebastian doesnt thing you can count on the market to have a sustainable rallies because the vix spiked above 20. The pattern looks different, thats not good. What else is different . T typically a bottom will be followed by the s p 500 but check out these parts and the volatility index in the last six months. Sebastian says while the vix bottomed in june, here we go, the s p didnt hit its peak until september. In fact, the volatility index is slowly rallying. I mean, this is what really is i think freaking people out. Its been slowly rallying for six months hitting higher highs and higher lows when the s p 500 was rallying. When the s p goes up, the vix is supposed to go down but what we see is panic was building and building even before the market peaked. Isnt that where were seeing the playing out of that today in the last half hour . Look at these charts of the s p 500 and index going back to july. Okay . Like i mentioned before, over the past years when the s p pulled back to the 100day moving average, that will be the green line, the vix would stop climbing and the fear would abate. Thats not what is happening at all. White the s p 500 bounced around this key moving average for several days with each bounce the volatility index kept climbing hitting higher highs before breaking out. The s p 500 has been totally breaking down and sebastian vowed the key level is no longer the 100day moving average and its likely to make a similar pattern around the 200day moving average, which is roughly where its currently trading and if that means a there is a strong chance the market will break lower yet again. Thats right. The prediction is for more pain and yes, im trying to use a calm voice even as this is not calming. Why does he think what makes him so pes mesimistic. The best analogs for the recent action happened in 2010 and [n thats where we see this pattern. Its not a good one, people. Take a look at these charts of the s p 500 and volatility index in 2010 and 2011. In april of 2010, as the s p 500 was peaking, the vix slowly made its way higher like we saw over the past few months and the next month the vix spiked above 40 and in response the25c s p spe two months getting totally hammered. The market didnt return to the peak levels it saw in april of 2010 for more than half a year. Or how about the summer of 2011 . Again, through june and july, all right, we see the vix claiming at the same time s p is peaking, same pattern weve been hit with lately. In 2011 when the vix spiked, the s p 500 fell off a cliff. So if anything sebastian thinks the current rally could be a sign of 2010 and 2011like action and the s p could have a good deal more downside. He expects the vix will break out 25. Well go back there. Well have another hideous down day or two in front of us before sebastian thinks its wise to start buying. How much panic . Sebastian wants to wait for the next down drift before he recommends going long and that could knockmvdc down to 1850, 2 below where it is now. That sounds like a small number. That will be a lot of pain. Here is the bottom line. The charts of the index as interpreted by vix, suggests this market could have another substantial leg down. Sebastian isnt saying its the end of the world but does think you should keep your powder dry and wait for lower prices and if the history of the vix is any guide, sebastian is right. Much more ahead on mad money including an out of the box idea for one major fast food return that could land you returns and would you cancel your next vacation because of the ebola break . Ill look at the stocks at risk and new young is a Living Legend that sold tens of millions of rortds. Can he have the same success, why not have a feel good story on a bad day . Ill ask him. Stick with cramer. So ally bank really has no hidden fees on savings accounts . Thats right. Its just that im worried about you know hidden things. Ok, whys that . No hidden fees, from the bank where no branches equals great rates. At a time when the rest of the world feels like its falling apart and our stock market keeps getting clubbed on a daily basis, what is worth owning or worth thinking about . You know im not exactly bullish about the overall market right now. Ive tried to make that clear to you for weeks now. Were in a treacherous moment. Caution, well be rewarded. That doesnt mean throw up your hands and stop searching for opportunities. We need to narrow the parameters, this are few occasions it makes sense to sell everything, i said that. This is not one of them. As this market gets pounded its creating sells and while much of the merchandise is getting marked down its compromised and some is high quality and thats what i intend to highlight. The plummeting price of crude may be bad news for the oil patch but perfect for restaurants. Every dollar people save paying for gasoline at the pump is a dollar to spend going out to lunch or dinner and dont get me started on how the climbing prices on crops like wheat and corn are not yet to the restaurant names allowing them to boost margins. But like i mentioned before, treacherous market, yes, now five times ive used that word. So we dont want to bet on just any restaurant stock. We want to find a company with an ace up the sleeve, a business to instantly unlock value for shareholders with a little more than a stroke of a pen. Were looking for a restaurant that can break itself up and make shareholder as fortune like the breakup stories were highlights from here on mad money even in a bad market which brings me tjack not boin. One of the nations largest burger trains, 2250 locations in 21 states and one of the better mexican inspired fast cause well chains, more than 600 locations spread across 47 states. Now regular viewers who listen to me about jack in the box made a killing on this. More than two years ago in june of 2012 i said jack was out of favor stock and ready to roar. At the time the stock was at 26 and now its at 66. Thats 150 gain after this terrible market. Then two month ace go i circled back to the jack in the box telling you its worth buying because mexican food is mainstream United States and the second best mexican chain in the country after chipolte. Not bad which is why you should take me seriously when jack in the box may have a lot more going and the stock could have enormous upside. If management breaks up the business, something we heard rumors about although the company hasnt done anything to enduring it. If jack in the box spins it off as a separate lly traded compan. In 2006 another burger chain, mcdonalds spun off the fast growing mexican division, chipotle. You never say stuff like that. Jack in the box is a company where the hole is worth more than some of the parts. Before i get into the breakup evaluation, why im a fan of jack because you cant just count on a breakup. The company is anding through a refranchising effort with the jack in the box brand selling from 25 franchise before the recession to 80 . This is what were talking about with general nutrition. The company is much more stable cash flow, greater visibility and put that cash to work in a very friendly shareholder way with one of the most aggressive buybacks i follow. Just from january through august the Company Bought back 277 million worth of stock. Thats 10 of the companys current market capization and have 160 million left in the repurchase authorization. Thats another 6 they can retire. Same time jack in the box worked wonders when it cops to turning around qudoba closing under which is why a break up makes so much sense. Assume they trade in line with peers, which i think is conservative, then some of the parts basis, jack would be worth 85 a share and again, im using conservative forecast but understand the market is bad. Jack in the box, you cant unlock a tremendous men amount of value if you simply break up the business. I dont care if you sell qudoba. Either way ewwr youre be doing shareholders a favor and without a breakup, jack is worth buying any week, particularly this week involving the ebola scare. Market throwing sales. Think about this. Lets go to chris in new york, please, chris. Caller jim, im wondering what the sell off recently whether its worth to hanging on