hours raised their guidance. stock is higher. >> guys, thank you very much for your insight perspective as always. crazy market day historic market day. be sure, folks, tune in tonight. cnbc has got your back and got you covered. a specia my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job is not just to entertain but to educate and teach so call me at 1-800-743-cnbc or tweet me @jimcramer. all right. we just had the largest absolute

intraday decline in history. so i think it is safe to say two things first, with the dow plummeting more than 1500 points before rebounding to close down 1,175 poin 1,175 points which is still horrible i'm calling this a reset not a garden variety selloff but a reset and it is exacerbated bier rant trading. volatility being code for dramatically lower opening than we deserve unless buyers come in to fix the balance where we begin to start have a real advance okay emphasis on terrifying

when the averages fall so far so fast, when the dow losing more than 17 points in ten minutes. it shows not that stocks are bad, it shows the frailty of the stock market itself. they trade all the time and you may not know them, they become the tails, the wag the equity dogs the xiv is down 94 points. you know that is broken much moments where the sell orders flood in by machine. and the buy orders also done by machine seem to vanish they are pulled. like it or not that is how the algorithm. i hate that word because i didn't take that class if buyers aren't ready tomorrow.

because of the etf i just mentioned under our screen, the opportunities for what is called artificial selling will be missed i don't want you so frighten or panicked because panic never made anybody a dime i call it the pat crash instead of flash crash we are running out of names. plus when in doubt blame the new england patriots i think we get day two of the pats crash thanks to funds that are going to bust as i speak because of the thing i talked about on the crawl but will most likely be hidden because heck, as much as i want it, i don't have a subpoena power even after last night's eagles big win now i am going to try to help

you tomorrow morning on "squawk on the street. i am talking about individual stocks that you and i know are pretty good. look, while we were absolutely due for a kldecline, the veloci is dow f for a market. they probably think that chips and food are the same. on a day like today, the machine simply dumped the whole asset class. that is how meaningless the distinctions are to individual companies are to these guys. the direction still makes sense to me. why? for starters for the first time since i began doing this show 13 years ago, i can't find a ceo who believes his or her stock is incredibly cheap instead i am struck with a sense of wonderness.

sure, the fundamentals are the best they have ever been the people i talk to are what we call business people, they know how hard it is to take market share from their opponents how hard it is to innovate how hard it is to raise forecast they recognize the business has its ups and downs. they tend to think their stocks should have the same trajectory. lifting slowly in fits and starts comfortable with that. they don't trust what we call a parabolic move remember that class? they don't understand the parabolic. the last leg of the rally was all about index money flooding b into s&p 500 when they come to me and ask what is going on with my stock, i know it is baffling. i know constructive is not a

word that comes to mind, but believe me, it will be second, is the bond market we are built on the back of very low interest rates without competition from bonds, it is easy for stocks to roar. as long as they are rising off low levels we weren't that worried. at a certain point you reach a place. a place where good news from the economy is bad news for the stock market we reached that point on friday. although since it is much lower today. bonds are competitive. not denying that high yielders like utility even though you get a few more days like today and then breaks are not going to be put on so on friday, the sellers came for the industrials which got hurt it is worried about inflation,

that is what we are thinking and the consumer package good stocks, another group. need to go lower before they find a new equilibrium then we are probably closer to a bottom than we realize i don't think we are there yet third, i want to mention something my friend scotty wapner mentioned on friday we don't have enough bears that means we don't have enough skeptics price targets so they know when to tell clients to take profits, cha-ching. but lately when stocks broke this market, when did the analyst do, they raised the targets they turned bearish.

fourth, you need to consider your fellow shareholders stock market attracted newer investors. newbies. now they find out of nowhere it is otherwise put yourself in shoes again. do these new investors want to buy more on weakness or cut and run? probably the ladder. need to be washed out. fifth, the one leadership group we can touch before going higher, the banks took a beating, a whacking on friday after the close when the outgoing fed chief janet yellen chastised wells fargo for bad

behavior major potential for dividend boost, buybacks, now it is taken out of the game entirely even worse, management came back with a plan that allows it to keep going wells fargo, just shut up and fix the darn problems. don't tell us how you are going to get around the spirit of the ruling and please fire your lawyers tomorrow morning bad advice you got what i call zero horse sense. when the regulators decided to crack down on you, you don't double down and hope to get lucky. they are lucky they are lucky that yellen just retired. what matters though is this one stock weighing down the whole financial sector tech is the largest sector in the marked

and what needs to happen for that to stabilize, this has to stabilize. before it recovers, more turmoil. then there is amazon which roared on friday after reporting a great quarter. and today that stock gained back all gains. i think it is a buy. finally we have no leadership that looks ready to bottom and rebound yet. we do need that. i have had a lot of big selloffs since '79. without generals we have nobody worth following. once the generals step up, it is safe to buy aggressively you have to understand this market ran up too far too fast and now ready for a decline.

make it so the asset class today it is getting too late to sell if we get another move down, a second pats crash, it will create too many juicy bargains to ignore. you can buy stock tomorrow in high quality companies that you like at prices a lot lower than you are seeing in all of 2018. let's go to gil in wyoming. >> caller: jim, congratulations on eagles nation great win. >> thank you. >> caller: on the closing bell today you mentioned the hayward great attitude of some companies. do you remember that i have been with a company for 34 years that i think fits that. exxon mobil. do i take my years with stock accumulation and retire with tax advantages or can you get ceo to

help this one-time cramer favorite to help this wobbling ship. >> let's take a loaner term perspective on a great american company. not only would i not touch that stock, even though i am not a fossil fuel guy anymore because the new generation is buying stocks and they don't like them. in the '70s, i would say count me in. brandon in new york. >> caller: booyah. congratulations to you and your super bowl champion philadelphia eagles. >> they had more to do with it than i did but i will take the credit. >> caller: i met you before. thank you for taking my call sirius announced that video would be coming to howard stern

show >> what makes this stock a buy is cars. you put it in cars, and people love it. it was not obviated by the cell phone. six bucks i like t i told some fellow on the way to the bus in minneapolis. he says thank you for sirius are you selling? no i am holding on to it. stocks rose too fast be ready "mad money" tonight, on a closer look at what happened during this brutal selloff, we are not done with it i see some opportunity plus i know this quadruple drop is scarey. but we are going to get through this don't we always? come on. i am opening up the phone lines. and i am taking your questions and concerns in a special selloff strategy

and ceo of cy speaking of chips. find out if it is right for the picking. i say stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer, #madtweets send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. for your heart... your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain.

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. darn voice is killing me after all that screamings at the eagles. game now that the dow has lost 1800 points in two days, a lot of it today is mechanical. because of order and balances related to the vix volatility index we need to ponder what set off this decline in the face of waves and waves of selling so we can profit from

it it is okay to try. we always have so let's get our heads around what started this mess which along with what we talked about at the top of the show cannot be figg figured out. i hate to sound glib but as i said earlier, we were due for a decline. we just were markets do not go up in a straight line. from the close of election night in 2016, to the close last thursday, the s&p 500 ran up an astounding 32% now an average of 5% pullback happens 3% a year. obviously that was a little inflated despite the large scarey red numbers you see on the screen, the truth is these things happen and you got to be ready for them, and ready at all times you want an analogy that is going it make one state and make the others feel good

market is new england patriots they won a lot of championships but sooner or later, they had to end. i hate seeing the stock market lose because that hurts you, the regular people look, let's remembering that recently as two weeks ago, commentators were coming on our air constantly and telling you that investors would welcome a pullback they said the market had gotten too high, too stretch. we got the pullback but so welcome, that the welcoming committee got frightened away. the proximate cause of the nose dive coming into today rising interest rates, failure of major leadership groups, your fellow shareholders turning against you. but really europe got the ball

rolling. that carries over. even though and you i know it shouldn't. by the time trading starts on this side of the at llantic, th european boards got slammed. i expect japan to sell off pretty hard. and then it goes global. regardless of the different economies and certainly the government it is the driver this was probably the longest single driver of the decline friday and the fear of today when rates get too high, money managers start to worry swapping out of stocks and bonds. on friday, the yield and the tenure, that is the u.s. treasury dropping rapidly. now keep in mind this is up from

around 2% in december. big percentage gain. the reason, we got a fabulous jobs support on friday we saw 2.9% increase in wages and that is the highest year after year since 2009. it seems like people are thinking inflation higher wages are terrific for people who work for a living it means the federal reserve might be forced to tighten more aggressively and the value of the stocks in the at years will be worth less. i think the economy can handle four rate hikes. if the fed gets more aggressive, it is not unusual to think too many hikingscan hit the breaks to make matters worse, we got high profile earning disappointments, mainly apple,

and alphabet which is really about former thinking, backwards because the quarter itself was less than expected two largest companies on earth however the worst hit was -- that group is being crushed here which is this time investors are generally worried about an investment if we are having an flaginflatii don't see a recession. not mad politics here, we have whole stations devoted to that but creates uncertainty whether we are fretting about the fbi director resigns or the

president pulls off a massacre this matters because the president has linked himself to the stock market which is great for stocks when they go well but represents an added vulnerability when they start tanking. if a trump presidency is a referendum on stocks, the last thing unt you want to see is a snowballing investigation. i think it is a good idea to search for what is working because the companies are doing so well. any stock that can hold its own here, that has something going for it amazon stock tacked on a nearly 30 points. any other market, this stock would have been up 100, 150 points

today amazon gave up every penny it gained on friday. not a good sign. but maybe a chance to buy. i am going to pick one situation because i need you to know how hedge fund managers think. it is not top of mind. but international paper and west rock looking for stocks that went up. the reason, combination of consolidation. westrock is buying capstone. while westrock and international paper did get hit hard, that is a special situation that i write down this could be interesting. this could be interesting. you get 100 names and boil it down to ten and you have three good ones. now this could be a baby with the bath water situation wells is getting obliterated

but remember what caused the selloff. higher rates who benefits the most? the banks. wells fargo is in the penalty box which makes bank of america, city, and jpmorgan more attractive you out to do this, buy, buy, buy. financially etf has wells fargo in it. wells is a broken company for now. the others are just broken stocks oh, and as far as investments banks i like goldman sachs here is the bottom line. harsh selloffs are miserable to live through you and i will do this together but they are unavoidable and they are part of investing

as long as you can stop yourself from panicking, you will do well and remember, the panic this time is being caused by the hidden and busted volatility etfs that are breaking down as i talk to you. and we will be able to identify the opportunities that are being created. likes the bank stocks away from wells. spotting the winners who refuse to quit even when the market is down a thousand points like amazon i think isdoing to refuse to quit this is how it trades in a bad market imagine what that stock will do when things stabilize. news flash, things stabilize, they always do much more "mad money" ahead. phone lines are open in a sea of red, key to find stocks that it works

could it be worth eyeing cypress semiconductors a troubled market where you feel like you are the underdog. stick with cramer. (daniel jacob) for every hour that you're idling in your car, you're sending about half a gallon of gasoline up in the air.

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. hey, listen, the dow's brutal selloff, the rest of market too i know you are scared. you are thinking what the heck is that. that is going to cause problems tomorrow 11 bucks, it is down 104 the mechanics of the market could be scarey. i told you on friday, not the end of the world this market is going to keep getting harder but not

impossible to navigate today was real ugly. i am here to answer questions. start panicking. starting to bug me go to scott in pennsylvania. >> caller: jim, big booyah too you. >> great coach, great players. they are one how can i help >> caller: you got it. first of all, thanks for helping us not panic in times like this. easy to do, but just the right thing to do right now is just to be patient. >> we didn't panic in 2007, 2008 we are going to get through this one. >> caller: as the average investor which we know you love and cater to us. what are some of the signs, markers for us to look for to

see the haircut that we under went today and the selling that is coming to an end and possibly enter -- give us a chance to enter and get good quality stocks. >> i am so glad you asked that, we noticed market bottoms in thirds it tells you what is going to happen and we are not so smart that we can outthink a market. always brighter than we are. so you will see a third bottom i think it is going to be the financials that bottom and then the health cares. because the financials are done because of wells today the health cares have been beaten up. how do you know stability? don't bite at the opening. if the opening tomorrow is weirdly up because of some problem that we don't know don't bite let it come in now here is what you need to know this is important. get your clock out tomorrow,

scott, because the market tends to bottom intraday between 11:00 and 2:30 but if it doesn't rally, there are a lot of foreselling that comes from margin clerks don't buy the opening. wait until 11:00 when europe is closing. at 2:30, we find out if it is going to hold. but that is the clock. you go the it. sal in new york. >> caller: booyah. thank you for taking my car. i love that you tell us the time to buy that is a help to me. >> if we are thinking long-term like 401(k), what am i going to tell you you got this break i was doing 401(k) one every

month. i am getting too old to contribute. >> caller: i am as old as you so in the same boat henry shine is my question big position in henry shooin >> we are not crazy about momentum it is for suckers at certain point. we are more a verizon and at&t people we need more dividend. j you know we have stanley on here all the time. but it has a dental division dental is tough. people don't have bad teeth as they used to like you and me and then we will go to dave in

illinois haven't heard from dave in about 36 hours. >> caller: help understand which is the more dominance in pain, being an equity investor or a loyal patriots' fan. >> their time has come that last minute so anyway, how can i help you? >> caller: i couldn't agree with you more the two year, ten-year yield curve is steepening. the ten-year treasury hitting a four-year high concerns of recession have faded but the speed of the yield rises concerning as it creates imbalances that equity market reacts to quickly. last friday payroll support

inflation are on the rise. do you see more upward pressure on bond yields >> okay. so dave, the ten-year went out at 2.7 when i was talking to scott wapner, we were hoping that it would get at 3%, or three point once% and then bottom. it is not our friends. the bonds are not our friends. we will go back to 2.8% and more selling. let's keep an eye on them. i made a lot of money when interest rates were 14%. how about randy in ohio? >> caller: two part question for you. the first thing s president trump recently said he plans on adding additional $1.6 trillion in defense spending and boeing

announced a huge 18 billion buyback. analysts are raising price targets. merril just raised it up to 470. i am hearing the market is tanking because ratings. do you really think president trump a real estate guy is going to allow the fed raise rates three to four times and kill the stock market and kill the real estate sales >> i am hopeful that the president observes the independence of the fed and doesn't do that. and in the meantime, i think the interest rates are going to, you know, i think they can continue to go higher i am not going it flee this market i am going to look at individual stocks that aren't impacted and maybe do buying. and how about the ones that are impacted positively?

i got your back cramerica. i think any of the defense is good we have to think bull markets and turmoil at 7:00. i mean, hey as long as my voice holds out. stick with nbc, stick with cramer and stick with the eagles. hi, i'm bob harper,

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11 when the market gets annihilated, i don't know what else to call this other than a pat's crash. you need to stay calm. i know this goes against every instinct you have. take cypress semi cy low power semiconductor along with chips for touch screens remember the auto markets cypress just reported an excellent quarter on thursday night. a nice top and bottom line because it is a supplier of

important cell phone parts the stock ended up doing nothing. today it got tossed to the wood chopper. should you view this as an opportunity to put it to work or maybe stay out let's welcome hassaen he will-khoury. how do you describe demand environment? >> during our call, we described it as strong no reason to be concerned based on the outlook look at the results. look at 2017

look at the guide, look at the fundamentals all pointing in the same direction. >> people should understand it is not just one product doing well, right? >> that's right. auto motive market, the number of units grew 2%-2.5%. we grew 16%. consumer outgrew industrial outgrew our iot connectivity, that grew 46%. >> frankly, it is astonishing. and what really bothers me is there are people on a day like today who literally are saying wait a second, autos are slowing so it has got to be bad for cypress. but you are taking more and more content in the car, and i can't see that you are taking any more slowing in auto. >> that is right i have always said, we are not

impacted by the sar. and even at 2%, last decade 2% to 3%. our story is the content where the content is growing we are in info tainment, in connected cars that is why we are growing. >> one of the things i love about your quarter and indulge me in this, there is a personalization going on on how people listen to music and how people make their homes. are you not integral to this personalization? >> absolutely. you know, when people get in the car, they want to get the same experience as they do at home in front of the computer, their tablet or any consumer device. you want to get in the car, you want your phone to be connected, your media streaming you want the media to stream from the front to the back so your kids can watch.

that is what we enable that is what people are buying car because of that experience. >> and also wearables are doing well for you. >> we introduced a new platform specifically designed for wearable and more importantly connected wearables. ultra low power. talking about seven-day battery life. >> i am astonished at how well you are doing. i was always hoping you get all the breakouts. every breakout is happening. we have to deal with the stock market, but thank you for coming on and put it go if context. we do not have enough people that understand that things are very good out there but the stock market is broken thank you so much, sir. >> thank you. >> that is hassane el-khoury

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it is time it is time for the lightning round on cramer's "mad money." i tell you to buy, buy, buy or sell, sell, sell -- and then the lightning round is over. are you ready, skee-daddy? it's time for the lightning round on cramer's "mad money." >> ryan is florida how are you doing? >> caller: booyah. looking at crisper therapeutic. >> gather rrrett in massachuset >> caller: what do you think for long-term growth >> long-term growth like a

company. richard in wisconsin. >> caller: thank you for taking my car congratulations for your eagles. my stock is electro scientific. >> you got to understand that is a trading stock. when you go up 10%, you go when you go down 10%, you buy. trading vehicle. bill in new jersey. >> caller: mr. cramer, long time follower shell and my grandson and i who bought first stock at 12 has a question about exel. >> very good speck good technology. jack in connecticut. >> caller: booyah. congrats on the game my 86-year-old mom has a couple hundred shares of anthem. >> well your mom has genuine

horse sense. terrific stock to own. let me throw in united health. josh in nevada. >> caller: booyah. been a follower since the '90s when you were in the radio data a block quarter. >> this is precisely the kind of stock i want to buy because they just reported a monster good quarter. and when that comes down, that is a buy, and i am glad you brought it to us that is the conclusion of the "lightning round". on announcer: lightning round is spsored by td ameritrade why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches?

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>> the best dance from the greatest city on earth philadelphia, fly eagles fly. >> how about the eagles and nick foles? one to go. >> we are not done yet. >> thanks for coming and speaking with us we are here because of you booyah e-a-g-l-e-s! >> announcer: the philadelphia eagles super bowl champions.

fly eagles fly >> when the stock market turns against you, important not to give into despair. panic is not a strategy many but how do you overcome this adversity? in all honesty, you could learn a lot from philadelphia eagles a team that i have had the privilege to get to know i am not bringing this up to shoe horn the fabulous victory you can see this team was different, special and in the end showing you how an underdog can triumph in the face of adversity. if you are facing anuphill battle like the eagles had, you have to prepare better than they do and plan more, and practice

more you can't afford to get distracted so when a fabulous quarterback nick foles goes out for a pass they practiced when you are in the dogfight like the more challenging market like we have right now, be sure you are ready. ready with plays even when you are freaking out work on it tonight the moment of panic is your moment to pick them up not to run from them. days like today are the reason you have a plan in the first place. second, take some risks. head coach doug pederson, you have to go for it, and seize the

day. and have faith in your judgment. if you have a risky stock, this may be the ideal time to buy it. buying high quality stock in high-risk situations that are almost erasing intraday makes a ton of sense even if it is something that no one expects you to do, take risks. third, get your hapname in the game carson wentz goes down, and you don't moan and grown get your head in the game, that is what nick foles no woulda, coulda, shoulda treat your stock like the brilliant howie roseman. he treats his players, he knows what to do, and let's go of the weaker ones to upgrade the stronger ones.

man, that guy is smart above all stay humble. any time you think you are winning because of your inherent genius, you are going to make mistakes the humble leader coach pederson, may not want to take no prisoners but knows a lot of it comes down to luck. gave me that seat, that is where my dad sat at the lincoln financial. he knows to thank his mom and his late dad we all have our totems we all believe quite falsely of course that we can influence the luck that often separates victory from defeat unless that is you are wearing the eagles veteran jacket of my late pop who didn't win live to see a win

super bowl remember, after mad money, don't go anywhere, special, tonight at 7:00 don't want to miss it. so that's the idea. what do you think? i don't like it. oh. nuh uh. yeah. ahhhhh. mm-mm. oh. yeah. ah. agh. d-d-d... no. hmmm. uh... huh. yeah. uh... huh. in business, there are a lot of ways to say no. thank you so much. thank you. so we're doing it. yes. start saying yes to your company's best ideas. we help all types of businesses with money, tools and know-how to get business done. american express open.

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with standard technology like lexus safety system plus. the lexus es, and es hybrid. experience amazing at your lexus dealer. don't move starting right now a cnbc special report. markets in turmoil. >> fear on wall street, anxiety on main street the dow plunges nearly 1200 points in an unprecedented day of trading. >> the gains for the year are gone >> the selling started right at the opening bell the dow down more than 300 points in minutes. but by late morning stocks steadied and clawed all the way back >> the dow basically reracing most of its 350 point deficit. >> then the bottom drops out