i'm jim cramer, and welcome to my world. you need to get in the game. firms are going to go out of business and he's nuts! they're nuts! they know nothing! >> i always like to say, there is a bull market somewhere. >> "mad money." you can't afford to miss it. >> hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i want fewer days like today. i'm teaching and educating so call me. there is a symmetry. a pattern involving how leaders emerge. it takes some time to go through the spin cycle. it barely happened at all today. averages getting crushed.

dow nosediving 243 points. s&p coming in 1.44%. nasdaq falling 0.88%. there were actually some positive signs that were constructive enough to merit an honest discussion. in the interest of explaining the prevailing pain, let's talk about what made things hideous to begin with. the stock price has been beholden to the expectation as to what people thought companies would earn or thought they would say. it is about great expectations and then having your stock clobbered. companies go higher. i'm asking. what happens if you have a company that has super duber i love you, you love me expectations and it fails and fails spectacularly? sell sell sell sell sell sell sell sell.

>> then you get the curious case of dupont. if missing earnings were an art form, this dupont quarter would be a picasso. the guernica of earnings. if it weren't for the lock out i would indeed throw the stanley cup. if it was an olympic contest, i would be giving this a high dive belly flop. dupont has noxious earnings emissions. they announce the hard results giving you a heads up. dupont's miss, it was monumental. when a company is about to miss

wall street projections by more than 5%, a company says it out to know ahead of time. that is a wikipedia entry for one you are to preannounce. earnings fall off and disappear. there were so many areas of disappointment, using everything that you see and eat that are white. management should have been able to flag the shortfall weeks ago. things must be amazing away from these areas of sure disappointment. just the opposite was true. let's just say that dupont's ceo is no longer the teflon boss. to seal the deal, the teflon business, it was awful.

i talk about winners in my charitable trust. dupont scalded the trust. there was no indication that anything was wrong. i thought things were fabulous there. of course dupont wasn't the only brutality. 3m cut its outlook. after sinking like a stone today, they are up 9%. a gigantic move for a large cap dow stock. i wouldn't be surprised if it is put in a bottom. 3m, give it a day or two and then you may want to pick one up. 3m shouldn't be in the same sentence as dupont. apple's sickening decline.

calculation in which ipads weren't selling that well. i still say don't trade apple, own it. all i can tell you is it crushed the stock but good. given how big apple is, the nasdaq pin action could not have been more lethal. you might ask, with apple 3m and dupont throwing jalapeno juice into the bull's eye, what positives did i spy? everyone sees the market going down. i'm looking at things underneath that you may not be seeing. first google. the hideous decline last week, google stopped going down and rallied before straining the gains. on a hard day, google closed up.

given the terrific report from facebook, i bet it continues the trend. facebook talks about the positives. and then there are the consumer names. let me tell you something that i don't think you know. it is not shocking that europe is bad. look, how about the consumer in america? coach? you see that? remember coach started the landslide. but coach righted itself today and delivered a solid number. you know, if the stock market had been flat today, the stock would have been up 10%. whirlpool gave us a standout number. harley davidson, reminiscent of polaris, remember the atv guy, ask yourself you might not be able to hold off from getting a

new dryer or washer, you can pass on a harley. oh man, i got to get an atv. i can't get to work, i need an off-road vehicle, coach handbags, i saw them on canal street for like $9 the other day. we get terrific numbers and after the bell panera delivered a better than expected quarter and buffalo wild wings report which shows the report. i'm not going to tell you that these stocks can cause the market to bottom. as long as we have gut wrenchers like dupont, and coach isn't goes to turn things around. harley can't blame 3m. but i want to point out that when you get a real pasting,

you can't find anything that can buck the trend like coach. that is why i rated this decline as nothing worse than a garden variety sell off. here is the bottom line. declines play havoc with the market. when you had higher expectations. but when stocks that led us down, you may be better off then you think or less worse off? rob in florida, rob. >> booyah to you from miami beach, how are you? >> real good. how are you? >> excellent. i want to know what you think of monster beverage in light of the recent negative articles in the "new york times." how do you see these caffeinated drinks moving forward? >> i told my kids to switch to red bull.

stay away from monster. it is a momentum stock. when you get even a hint of the fda being involved with a monster drink. you know what, i love this stuff. no, i think you got to be careful. i think you got to be out. >> let's go to al, in florida. we have miami beach, we have miami. >> lots of volatility. what is up with that stock? >> where do you see disc drives, al? they are in pc's. and people aren't using pc's. not like they used to. it is a shrinking market. western digital is shrinking too. >> mary in maryland? >> super value.

i bought it at 303 and i watch your show all the time. i would like you to give me information at super value. at $303 would you hold it? >> i need you out of it tomorrow morning. you are playing with fire. the company you have all of these stories how they make you a tender offer. please, you are lucky that it is not lower. you need to have a $3, $4, $5 stock. may i suggest it is sprint. brutal day. no way around it. but a lot of it has to do with managing expectations. the companies that really blew up today didn't manage them very well. it is how it always feels when the market is down this badly. later on this week, i bet you we put down a buy. "mad money" will be right back. >> coming up. glossy coat? ppg's future looks bright. cramer paints you a picture when

he talks with the ceo. and later, midas touch? the market plunges and uncertainty runs rampant. it is time to take cover in the shiny stuff. cramer is tracking the technicals on an all new edition of off the charts. plus, drug problem? isis pharmaceutical stock collapsed last week after the fda expressed safety concerns over its experimental treatment. can it recover or is it a prescription for pain? cramer's exclusive with the ceo is just ahead. all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter.

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the lesson this earnings season is not that all companies are doing terribly. that is not the right take away. there are some silver linings. you need to know where to look. dupont, giant chemical company missed numbers in a major way. just because dupont disappointed doesn't mean that every other chemical company is doing badly. when you consider how bad dupont was, some of the positive results seem more impressive. ppg is a long time cramer fave. makes all kinds of coatings. the big difference between ppg and dupont, ppg have been more aggressive about moving away from commodity chemicals and

focusing on value added chemicals that can't be easily duplicated. they are working with georgia gulf. that deal will complete ppg's transformation. but even though the deal hasn't happened yet, ppg posted a five cent earnings beat off a $2.19 basis. revenues were basically flat. that was because ppg took a 4% hit on foreign exchange. they saw a healthy aerospace business. european weekend not so hot. ppg's balance sheet is strong, getting stronger. you are getting a fantastic entry point in a stock that rarely pulls back. yet, after the mess we got from dupont, let's talk to chuck bunch about the quarter and where the company is headed. welcome back to the show. >> it is great to be with you again.

>> this was clearly today a day that demonstrated that being commodity chemicals, which dupont is still in, is just not working in the world of globalization today. but your strategy, total vindication. >> as you know, these commodity chemical businesses can be volatile and cyclical. we have tried to become a more consistent specialty company and we believe we have done that with the georgia gulf transaction. >> what is better about a proprietary chemical company? >> typically you have good points of differentiation and value creation for your customers. these are proprietary

innovations that you can add value to your customers such as the automotive ore aerospace companies where you are bringing corrosion protection, new designs, decoration, these are the types of things that let your customers appreciate the things that you do and they can add value for their customers and it gets a tighter relationship. you also have more consistent sales and earnings and you are not as exposed to the ups and downs of the economic cycles or pricing that you can get into. >> chuck, you also had excellent auto results. excellent. now there are companies in this country and in europe that are doing, very, very well in the auto business. >> yes, jim, the automotive oem

business globally is still quite healthy. we're going to see 5% to 6% global growth. here in north america, the business has been excellent. we are seeing so far, almost 20% growth here in north america. it is a bit of a renaissance here for automotive manufacturing in north america. we are benefiting from that trend. yes, we have seen weakness in europe. the overall strength of our business, what we have been doing for our customers, or the localization of our capacity in the emerging markets in china or south korea or mexico are really helping us to capitalize on what has been a solid trend here in north america. >> one of the big weaknesses in

due pot was titanium dioxide, a whitener which has been responsible for 60% of the growth in the last two quarters. you are a buyer of titanium dioxide. i presume that dupont's woes could be good for your company. >> we've experienced quite a bit of inflation over the past two years. and still, year over year in the third quarter here in 2012, the prices for tio 2 in north america are higher than they were a year ago. that trend has changed during 2012. we have seen some declines, prices are still higher than they were last year, but we are finally getting moderation in this chemical commodity that is an important component in our formulations and we think this would be a help for us going forward as we no longer have to

engage in these aggressive measures to reduce the impact of this tio2 inflation in our raw material cost picture. >> one last question, when you are doing this deal with georgia gulf, people can tender their ppg stock if they want. if you are a holder of ppg, would you tender? >> right now, i would encourage all of our long-term ppg shareholders to continue to stick with ppg. this has been a great story for them and for us. but this is still an excellent opportunity to acquire georgia gulf shares. we think the combination of our commodity chemical business with georgia gulf is going to be a good win for both companies.

georgia gulf is going to be a stronger commodity player exposed to the player on the pvc side. we think it will be a good transaction and we think the prospects for both companies are good. longer term, this should be an excellent value creator for us. >> it is nice to have something to bust the gloom of the chemicals today. totally delivered. not everybody had a tough quarter. they had a good one. >> coming up, midas touch? the market plunges. uncertainty runs rampant. is now the time for investors to

take cover in the shiny stuff? cramer sees if gold paves the way to profits on "off the charts." and later, drug problem? stock collapsed last week after the fda expressed safety concerns over its experimental treatment. can it recover or is it a prescription for pain? cramer's exclusive with the ceo is just ahead. ally bank.

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after another brutal day at the office, just because the averages are getting clobbered, that is not a reason to sell everything. that might be a reason to do some buying. you know what has worked? gold. yeah, gold is a hard asset. when countries are debasing their currencies, it retains its value. you must have gold in your portfolio. it's a currency. i prefer the gld. i don't like the stocks as much, but they have been hot, too. it feels like the shiny stuff is being pounded along with everything else. on this hideous day, i have good news. there are signs that gold is

about to make a major move higher. coo at optionpit.com sees higher prices in gold's future. the key to the thesis is a little known indicator known as the gvc. the george victor caesar. the vix measures prices on the s&p 500. we have talked about it before. but look at this chart about how it works. when traders are worried about the market being about to get thrashed, the vix will rally. you get the market going down. on the other hand when traders are more confident about the market, the numbers fall.

pretty good proxy for the broader stock market. there is also a volitility index for gold. gvz measures the level of fear about gold prices. last wednesday the gold volatility index closed at its lowest level since the chicago exchange began listing options on the god. i didn't. the lowest level it is at five plus year lows. since last wednesday it has crept back up but it is still at

low levels. this is an astonishing chart. traders aren't worried about gold. when it reaches these low levels, we tend to see big moves, huge moves in the gld. look at these, every time. look at this. sebastian has noticed, every time the gold vix hit lows, the gld has moved pretty darn hard. it is not a coin toss whether it is up or down. in almost every case where the up or down has made a low, it has happened this year. and then again with the rally since august, out of all of the six times where the gold vix made a low, the only time it went down was in may. what does this say?

when we see the gold vix at extreme lows, that move is far, far, far more likely to be a rally than a sell off. sebastian has predicted a rally that makes pretty good odds. i will take five out of six. it was at the extreme of extreme lows. check out this chart of the gld going back to the beginning of the year. gold is now at a six-week low. sebastian thinks the precious metal will leave these numbers behind. that is in part because of the sell off. sebastian, he sees the gld making a run at $180, in a move that is totally contrary to anything i heard today, yesterday or friday. based on what is happening with

the gold vix, he thinks that it could outperform what it did in august. you need something safe you can circle the wagons around. based on the action in the gold vix, there is a five out of six chance that the direction of this move will be higher. you know me. i'm a huge believer in gold. not for trading but for investing. i feel like it is just the nudge we need to get you to buy gold into his unwarranted weakness. ginny in california. >> this is ginny from california calling from california and my partner knows it and he is okay

with it. >> thank you so much. >> you have put me through financial school and i have followed you since i took over my own accounts in '08 and i would not have been able to do what i've done without you. >> thank you for subscribing to action alerts. how can i help? >> okay. as an action alerts member i have followed you into many stocks. the one i'm calling about today is one i bought when you said we should all have gold. now you don't mention it anymore. am i wrong about staying in iau? >> you are right. this is another proxy of gold. you are in great shape with that. i think that is about to rally.

it has been doing nothing for a while. i thank you for watching the show and those kind words. you made my day. jeff in new jersey. >> hi jim. >> jeff? >> i'm with bonds for you. we do a balanced investing strategy. i just sold am at a profit and i'm looking at gold again. what are your thoughts? >> i get the charts delivered to my door. i have no other life and agnico eagle is clearly breaking out. i'm reluctant to tell you to transfer to barrack or auq. but if aem is breaking out, the gld will be supreme. it is so right here. you know i like gold as part of every portfolio. and dismal days like this one

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it is time for the lightning round. rapid fire calls. play this sound and then the lightning round is over. are you ready? dale in illinois. dale? >> mr. cramer. what's up? northern illinois university husky football booyah. >> love the program. what's up? >> we are 7 and 1 and should be ranked but we play in the mac and nobody pays attention. >> no, we do. we go through -- go ahead. >> all right i've got a stock that has an uphill battle. it's a steel company. high beta. it was down 6%. earnings report did not help. the stock is ak steel. >> no, man, come on. sell sell sell sell sell sell

sell sell you are in the majors. let's go john in new hampshire. >> cramer let's get a big booyah from the university of new hampshire. what are your thoughts on omni vision technology? >> sell sell sell sell sell sell you don't want to be in that. >> john in missouri, john? >> farrel gas. >> price wars in that industry. how about enterprise product partners. >> evan in michigan. booyah from michigan. >> i'm with that, what's up? >> awesome. lo? >> i hate to endorse smoking but i will endorse smoking stock.

i want to be a buyer. russell in california. short and long-term. this is a great investment why? because it is a play on paper and plastic. going around the world. bill in virginia bill. >> texas capital bank shares tcbi. >> don't know it. got to go do some work. i don't have the answer. let's go to carole in florida. >> my name is carole and i want to know, should i buy or should i sell. >> sell sell sell sell sell sell sell sell sell sell sell sell sell sell sell sell sell sell sell sell. >> nothing proprietary there. throw in nokia and research in motion. wow, that is the kitchen sink. >> let's go to thomas in florida. >> walgreens. >> i'm now starting to become a believer. i know that the numbers weren't that good.

i was in my wllgreens yesterday and it looks real good. let's go to bob in new jersey. robert, speak to me. >> big booyah to you jim. >> my stock is osur. >> i'm surprised that this stock is not doing better because they have that aids test in the stores. we've got to see the earnings. i need to go to adam in florida. >> jim, hban. >> yes, that is a regional bank that is doing everything right. may i add that the banks that hold up better than most should be bought here. not included. and that is the conclusion of the lightning round. >> coming up, drug problem? isis pharmaceutical stock collapsed last week after the fda expressed safety concerns.

can it recover or is it just a prescription for pain? cramer's exclusive is just ahead.

it is worth remembering that the stock market has a habit of over reacting to something. we see it with individual stocks. i want to talk about a stock i

recommended that went on to get eviscerated over the last week. i'm referring to isis. it treats high levels of ldl cholesterol in children. i decided to recommend isis because i thought it had a better risk/reward. i when you play the fda roulette sometimes you lose and some would say i blew it. the drug ultimately got a thumbs up. the stock got hammered and part because of the safety issues seem to be coming out of the

blue before the data went to the panel. they create a credibility problem. that is why i want to give isis the chance to explain. they don't duck it either. let's talk the founder and chairman of isis pharmaceuticals. let's play it by the book. your drug panel had more reservations about your drug than the other company's. why would someone take your drug over that one? >> let's deal with the questions that caused the confusion. i think in the meeting, it was absolutely clear that there is absolutely no cancer signal in the clinic.

the conclusions reached by the independent lab that did the studies were 100% correct. so, i think that got tremendously blown out of proportion. the liver damage worries, they did seem cogent to the analysis of the 9-6 vote. if you look at the liver, compare it to limidibide, the liver fat is lower and less severe. i think it got out of kilter. both drugs are going to be used and bring great value. >> who would pick your drug over the other drug? what would be the reason they would tell a patient to prescribe your drug?

>> since we did the controlled trials, there were opportunities to ask questions of our data that were not available to them. the people who are prescribing these drugs were the lipid experts. there have been 10 or 15 independent reviews of the drug. all positive. our drug will be used because it lowers all bad cholesterol and it will be well tolerated and it has a much easier dose regimen. you don't have to put patients on a fat-free diet. >> obviously you would think that panel would have been more -- instead, you may

disagree, some panels provided multiple reasons why they almost voted no. i would think that those people don't understand the greatness. >> i think that is probably true. i think when you are in one of these panels as you know, all kinds of things happen, they influence things. i think the important thing is to look at the data and understand the quality of the work that we did. this drug works. it is adequately tolerated. the news that we reported on that drug is great. >> okay, well how about the investors who are telling me they knew things and they withheld them. >> nothing could be further from the truth.

we have been more forthcoming than almost any company i know of. and we said, that the carcenogenic studies were clean. those the conclusions that conducted the study. >> and these are being done with two of my favorite companies. >> listen -- >> right, they are on your team? >> we presented the facts. we stand by the facts and we believe that anyone who actually watched the panel, understood that there was a question of interpretation, not a question of fact or data, and those data came from a very complicated set of studies where there are always lots of findings. >> there is no reason to think that it is now going to be found? >> absolutely not. canambro we showed doesn't produce those tumors. there were two other drugs

discussed who had studies that the people who did the study concluded there were findings that were relevant to cancer. ours didn't. >> fair enough. that is dr. stanley crook. he is giving you his side of the story versus what a lot of wall street research said. which is that the 9-6 vote in favor of his drug is not an affirmation of how good it is. stay with us. i know the name of eight princesses.

i'm an expert on softball. and tea parties. i'll have more awkward conversations than i'm equipped for because i'm raising two girls on my own. i'll worry about the economy more than a few times before they're grown. but it's for them, so i've found a way. who matters most to you says the most about you. massmutual is owned by our policyholders so they matter most to us. massmutual. we'll help you get there. we don't call this our company,

we call this our mission. green toys teaches children that if i have a milk jug and i stick it in the recycling bin it can turn into something new. chase allows us to buy capital equipment to be able to manufacture in the states to the scale we need to be a global company. with a little luck green toys could be the next great american brand. find what's next for your business at chase.com/mainstreet

the global economy must be weaker than we think or oil would be going higher. if oil goes lower we should sell stocks. nothing could be more wrong. oil is a tax. no amount of tax cutting is going to help small business as much as the declining gasoline prices.

i don't know a single business that makes enough money to be helped by a tax cut. we should be singing hallelujah whenever the price of oil comes down. no common sense. further one of the more important errors in governor romney's campaign is the price of fast. the only way to do that is to give opec a run for his money. that is another positive. finally, the oil related stocks make up 10% of the s&p. come on, that is crazy. the opposite is true. except for the transports, right? it is silly. the stock market should be going up, not down. here is the silver lining to

lower oil prices. there is the freak out. on day two or three we get a recognition on how positive this is. if oil goes down to $80 we have number that has to come down due to revenue weakness. this is what we see and happen many times before. the good news in the oil decline awaits us. we have to get through the doom and gloom first. >> build your future. >> thank you for what the money translates into, in my case a college education for my son. >> thank you for your passion for stocks. "mad money" does work. >> you are making me money for college. i love you. >> how many other shows have kids calling in and saying booyah?

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