allstate insurance >> peeking at square on the long side. >> karen >> apple, if nervous, buy a little friday, some monday. >> tim. >> conviction. for watching. you got to need guidance cramer has it for you. "mad money" begins right now 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 put this thing in context so call me at 1-800-743-cnbc or tweet me @jimcrame what does it take for a stock to rally? is it even worth the effort to try to find a need until a

haystack the dow tumbled another 1,033 points >> no, no, no. >> s&p sank 3.75%. nasdaq nose-diving 3.9%. in all honesty, what does it take should we look the answer is no no at least for the moment. there are far too few winners and the circumstances behind their moves are so hard to predict it's simply not worth the hunt, not right now. you have to be content with buying the stocks of the companies you like that have hit attractive levels even if you end up having to buy more lower later betting one day the madness ends with wildness it's often a better idea and this is what my advice is to sit on your hands after late afternoon's late reversal we know any move higher for the moment will prove to be

effectual. i don't want you to sell everything look, i'm not trying to be a defeatist. sometimes the truth hurts. first, let me do this. let me clear up the real culprit behind today's shellacking i heard stocks are going down because of weakness in the bond market this is false. bonds might have set off the decline last week but they barely budged today. wrong suspect. i know plenty of people would love to play the sell-off on washington we got used to that for awhile the government has to have massive bond sales to pay its bills. that's in people's heads and so is the prospect of a government shutdown it's never caused a 10% decline in a matter of days. washington is not guilty, at least not of this. there were no big earnings supports last night or this morning and most of the ones we got were not only positive but even strong earnings couldn't

stop them from going lower the real culprit is the same miscreant that's weighed us down for the last couple of days, the unspooling of these obscure products that allow frankly i have to be plain spoken idiotic money managers and neophyte investors to bet against volatility or shorthand, vol. they always think they're so cool last year this made you good money because the market was placid so the volatility index, you know we call it the vix seemed like a great short. now we've got volatility in spades, though and it's the last thing you want to bet against but people did and keep doing it the other day the collapse of just one of these instruments caused a horrendous decline in the pats crash where the dow lost a percent in the time it would take to grab a diet pepsi or to watch the eagles victory parade in the hero starved town of my birth, philadelphia, which

i didn't get to watch. it's rooted in similar instruments. if you stick around i'll give you the code, i'll give you the names of the instruments and symbols so you can monitor how this trade is playing out and sense when the destruction is coming to an end right at home. why do we care because in each case the losers most likely had to raise cash. the losers of this vix trade raised cash by selling stocks and stock futures to meet margin calls or handle requests by their investors who are dumbfounded for their money back that's the pressure. that's the klatt rat damage that is hurting your stocks and crushing your nest egg the spillover is so great that it's weighing down even the best of the best of stocks with the best numbers and the best prospects, hence why i said it's a needle in a haystack to find winners at this moment here's the bad news, though, i counted 17 of these darn things, creations by various brokers and managers to let you make a leverage bet against the vix an

now they're all imploding. now it's not as though we haven't seen this kind of thing before i swear some of these dopes never learn. the current situation is like a similar version of what happened in 2008. after hedge funds levered up, borrowed money to bet on mortgage backed bonds thinking they were getting a sleeping dog but it turned out what they really got was a gigantic mama bear and got behind her and the cubs back then i used to call it hedge funds gone wild. when you lose a fortune with borrowed money borrowed money you need to pay your broker back on that leads to forced selling in the stock market because how else are these guys going to raise that kind of money. that's what you're seeing on your screen. the forced elling. the fact these bets are largely hidden from us and they're like cockroaches, there's never just one, tells you we're in for some more real pain. >> i wish it weren't the case.

listen, man, it will clear up tomorrow but you know me, i can't do that i've been doing the show for 13 years. have i ever done it? when will it be safe there's an answer, when enough of the managers who use this strategy strate strategyare beaten we want them wiped out the problem is we don't know when they'll be wiped out so we're all being held hostage at the mercy of these clowns who seem to be creating their very own personal bear market the rest of us are trapped in. let's just say you have to expect more crazy volatility until these morons break a lot of the people recently came into the market simply can't handle this kind of environment. there is no shame about that there is no shame. it's simplyhuman nature but their hasty exit is only compounding the panic we're seeing what can protect a stock from hedge funds gone wild? the list is small. let's go over what won't first big dividends won't help

the market is going down all at once yield is very little and no protection evaluation, we often hear about that wait a second. stocks can always get cheaper than they are today if there is another sell-off from moron sellers. not a defense, evaluation. buybacks don't matter at all because they aren't big enough to sop up all this forced selling going on plus companies aren't allowed to repurchase stock after 3:45 p.m the government doesn't want them setting their own prices at the close. hence did you ever see how bad it is from 3:45 to 4:00. no one is bidding like the companies and, of course, the sellers realize they have to put up money at the end of the day so what did work today what does it leave well, it's now only ridiculously incredibly fabulous upside surprises. ones that would take your breath away twitter stock exploded higher because it reported real profits, the stock of grubhub,

seamless in new york jumped because it reported an amazing quarter and got itself a new investor 200 mill the games were ex-age rated because 20% of grub has been sold short because most people thought there was nothing special about a restaurant delivery system. hey, they're like messengers well, the shorts were wrong and propelled it into the stratosphere there is nvidia. i wanted to be lighthearted and talk about nvidia my dog but we are not lightheated when we talk about this nvidia was down hard all day because of this nonsense i'm describing but this stock managed to rally in the after-market because the quarter was that fantastic and i've had a good, hard look at it. it was great if we get a huge opening which is certainly likely because of what i described and nvidia, the stock goes lower, it might be worth buying but if it's up big, you stay away it will most likely be pulled down don't chase a thing in this

market that's a fool's ear and. the bottom line, we've seen this movie in bear markets before when the market breaks down like this the culprit is forced selling. it always is, people it's behind the scenes i worked in the margin department at goldman. i have seen what the clerks do this time it's caused by the breakdown of these leveraged bets against volatility and it won't stop until the bets are unwound. we don't know when things will get placid again but until the traders get wiped out finding winning stocks will be like finding a needle in a haystack you want to identify high quality companies and use the weakness to scale into them gradually on the way down betting that the vix will end at some point and the key is you need to leave room to buy more at lower levels as we're doing for my charitable trust because where this thing stops nobody knows. although if you stick with me in this show i'll give you the best clues i know at least to try to find out

let's go to jeff in new jersey, please jeff >> caller: hi, jim this is eff. thank you for having me. >> of course >> caller: this is a two-part question i've been buying home depot stock for ten years since it was $20 a share >> that's smart. >> caller: thank you and i'm just wondering if i should continue buying and holding for my portfolio or not. >> look, we'll view this market in two ways. if you need that money and you need that money in the next three months, look, i got to tell you maybe take some off the table. home depot is a great company and none of what's happening in the stock market has anything to do with home depot my wife and i are planning the spring planting season you think i'm going to change my mind because some vix trader is knocking down the market it ain't like that home depot is good i don't want you to do anything other than when it gets to 170 buy more unless you need that money now. joe in new york, joe >> caller: hey, jim, how are you, boo-yah.

>> boo-yah, man, what's going on >> caller: my question is about wwe. so recently they reported their highest revenue for 2017 >> right. >> caller: with the recent changes in management, the announcement of the xfl, their wwe network and 25th anniversary of monday night raw, a milestone. >> that was a big hit, yeah. >> caller: yeah, i was there it was awesome >> nice. >> caller: what does it mean for their stock and is it the right time to buy? >> look, there is no right time to buy right now and i'm fortunate enough to have a whole show devoted to what would be the right time here's how we'll look at wwe once again, while fans all over the globe are not going to stop or not going to stop watching, hold on to it. if it goes down 10% -- >> buy, buy, buy. >> and then wait and buy some more lower it could happen. down and down she goes where she stops, well, i got

some ideas in the mechanical madness ends, though, and the instruments calm down i want to you use the weakness to scale wide scales we call them into high quality stocks but no hurry the dow just dropped 1,000 points for the second time this week when will the sell-off cease and what's really behind the decline? i'll try to give you some answers. the market has been all over the place, i know you got a lot of questions. over to the phone lines to talk a special strategy session you know that panic never made anybody a dime after the 1,000-point drop it's clear we're in a bitter adjustment period. is that a euphemism? yeah i'm revealing how we got here. stick with cramer. >> 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.

so how will all this end craziness. when will we be able to enjoy the fruits where fabulous quarters like the we got from nvidia will be rewarded and with sharply higher prices. or will we have to always have one eye on the exit door no matter how good the numbers are and for nvidia's case they were spectacular. you have come to the right place because i am about to reveal the instruments making it so nvidia isn't up 30 tonight and so many of your stocks are already looking down big in tomorrow's session. first understand i only know this stuff because i traded stocks for years and years and years and i have had to put pretty much the sum total of all my thinking caps on this one because it is real hard to find out and in many ways more difficult to explain but we'll try it here. first there are four instruments, i keep using the word instrument, things that

trade. four instruments that i am watching to figure out when this portion of this stock market nightmare is over. they are all a mouth full but you know what i owe you the whole truth and nothing but the truth. even if you actually need a rocket scientist to figure it out. let's start with the concept of the vix which we've talked about on tuesday this is a gauge calculated that measures volatility or how much up and down craziness there is in the market. some call it the fear gauge. we've called it that on the show for the longest time there hasn't been much craziness we've been pretty much in a straight line, kiss fence not a stairstep. just up. that has meant there has been extremely low volatility record low volatility. never seen this stuff before i call it a fantasy aisle. it's a trading addiction we used to joke when i was at goldman sachs that somebody would create an instrument that

would allow you to trade and bet on braces on windows that's how bad the addiction is on wall street so it was a natural that brokers created securities that allow t you bet on whether there's going to be a lot of volatility or little not just up and down stocks, not just up and down bonds, not just up and down commodities but up and down the actual notion of vol. there's a lot of fear and panic, you want to own volatility they call that own like it's an asset. think of it an as sed you want to buy or sell i'm not kidding. if there isn't a lot of volatility you want short volatility they will trade anything on wall street including fear. now it isn't enough sometimes on wall street to just own volatility or bet against it brokers just know that people crave real juice particularly hedge fund managers so they invented stocks to allow twice the gain of the vix or twice the loss if it goes down if you want to bet the downside on fear.

these instruments are the proximate cause of the madness you're seeing. yes. consider them a nuclear blast zone and fallout is raining on the s&p 500 that is threatening to take down the entire market even much further than it has if things are not, let's just say, calm the instruments i keep referring to are actually funds. actual funds that track futures that trade on the direction of the vix in their own ridiculous way. well, stripped of wall street why don't we just call them wager founds like when you go to the track. some is like the daily double. get a cigar out and smoke and lose some money. except for it's your money the first wager fund is called the pro shares ultra vix short term futures it's an etf which seeks on a daily basis to provide investment result that is correspond to twice the performance of the s&p 500 vix

short-term futures index the symbol this goes by, write it down, please. uvxy now, if you look at the uvxy today you will notice one it started at 19 bucks and went to 28 yeah, about a $9 and change gain that means if you owned it this morning, you made 9 bucks. but how about if you were short it, you lost 9 bucks you may think so what? something so obscure, how -- what is cramer smoking he's identified this particular piece of paper as why i'm losing money. the answer is, i'll tell you why, over 110 million shares of this thing traded today. that's incredible. much higher than it used to be it sure wasn't meant to handle that volume and it can't now, there are many hedge fund managers who thought there wouldn't be a lot of volume so may have sold call options against this which is the same as getting short or betting

against it which would have been a fantastic trade for agents when there was no volatility just keep taking in that capital. keep taking it in. not anymore. >> no, no. >> very big funds that bet against it and have to raise cash to stay short it. either end the pain and buy it back or cover their call shorts or keep wagering by putting more and more of their money, you know how people like to bet more and more, they got a losing hand and put more and more out. a lot of people are doing that too. how? they have to sell stocks and sell s&p futures they don't have the money on hand collateral i know it soups difficult to believe but managers considered this the trade for ages because they simply didn't believe that the vix would or could spike as fast as it did got caught plain out of position the second instrument, i path s&p 500 short-term futures, he can change traded note trades

under vxx. this fund seeks to offer exposure to a daily rolling long position in the first and second months of the vix future contracts. it's another mouthful that is frankly another way to bet on the vix, futures going higher. today this fund starting at $45 and it went to 55. you would have made ten bucks on this but forget about that if you had borrowed money and bet against it you would have lost 10 bucks that you didn't have to begin with that is a huge percentage of your capital if you're running a fund once again it sounds like something that couldn't hurt the entire market but nearly 85 million shares traded hands. that's called impact the third is -- i'm giving you all of these i could tell you it's the vix but it don't work for you. there is a velocity shares daily 2x vix short-term etn or exchange traded note which is also known as the tvix which gives traders two times the daily return of the s&p 500 short-term futures index

you can't make this up can you believe the s.e.c. bl s blesses this junk -- if they knew what it was no today the tvix went to 13 1/2 a huge loss if you bet against it they have to sell something so they sold off your stocks, tvix, who's heard of it? is traded 112 million shares that is insane the short-term futures, ticker svxy which seeks again on a daily basis to provide investment results that correspond to the inverse of the performance of the s&p 500 vix short-term futures index this one goes down as the vix spikes ait did today and started at $12.30 and sank to $9.50. if you owned it but if you shorted it, you did well people probably borrowed money

if they didn't they will have to put up a huge amount of collateral tomorrow. if you or your -- if i was your broker, i'll sell you out tomorrow so maybe, maybe, maybe they sell your stocks out tomorrow so again you have to be thinking that anyone who wagered on these and borrowed money to do so has to put up collateral that spills into the marketplace or the market goes down you can argue much of the downward pressure was from various wagers going wrong and betters having to raise money to meet margin calls. do you think that tooks went down, anything happened. i can look at the tape while i'm talking here i mean, nothing happened with those of these companies if you went to, you know, let's say you went to intel today. you think anything happened, no, all that happened is they had a stock and it got whacked by this stuff. these funds probably need to raise more money tomorrow when the market opens they are desperate they are flailing and they are crushing those people who own stocks and have done nothing wrong except happen to be in the

crossfairs of these fire instruments. they're at least 12 others that are like that i know of but i had mentioned the ones with the biggest volume and have the most impact i'm not hearing anyone else talk about them maybe i'm nuts or real right or both we don't know when this tail wagging the dog will end sorry, dog lovers. i got two of them named nvidia if you follow the uvxy, the vxx, tvix and svxy and see the volume dry up on these, in other words, that the volume comes down and it's lower, that will mean their power to overwhelm will diminish it doesn't mean the stock market will automatically go up maybe interest rates go to 3% and they'll say, cramer told me it's all clear, no, but it means the coast will be clearer than it is now. the bottom line, follow those funds that i just mentioned. recognize that right now they are the real culprits. and when you sigh the volume go down, i think you have a better

chance to buy stocks, good stocks like nvidia and many more at lower prices than they simply should be because of the hedge funds going wild licking their wounds and getting crushed in these vix bets gone awry ooh, had they're done if you didn't buy anything, you'll be pretty upset much more "mad money" ahead. i'm opening up the phone lines to hear from you the voice of cramerica, maybe you can teach me something i hope so. how this volatility could present a new problem? don't let today's drop scare you. there are still stocks -- i found one that i decided to do i had to have one tock tonight that hi to say you could buy because i'm not going to get us so negative as everybody else. that's what suckers do ulcr explain how a recent merger cod eate the perfect package. so stick with cramer alerts -- wouldn't you like one from the market

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let's be real. the wild ride is downright nauseating, for me, for you. the market is a whole new beast but it's not a beauty like before i'm not calling it a bear market but you get what i'm talking about. i'm going to try to guide you through it as best i can i know you have questions and you know i got your back why don't we start with ryan in south carolina ryan >> caller: cramer, good to hear from you >> thank you >> caller: i'm a new investor. i'm 23 years old i am wondering what should i be looking at for the next year, five years and ten years understanding this market is so extremely volatile >> wow, you're a lucky man have you youth on your side which is pretty admirable. you can buy things, highest growth things imaginable

nvidia was created for you regeneron was created for you, the kinds of companies i'ming about that have long-term views, greatness that are right now hitting their stride but can get better and better but you know what, there's other older line companies too i think terrific, j & j is a good stock for you. it will build dividends over time and you reinvest them and we talk about -- let me give you another one. jpmorgan you can put those away so you want -- because of your age half to be nvidia like, salesforce.com red hat. the datacenter place those are great for you. amazon is probably the best of all. think long term. you got your whole life ahead of you if those stocks don't start going up don't buy all at once. let me ask you since you're a new investor how did you and why did you get in why did you choose stocks when they're so bad

ryan darn live show a lot of things can happen like not knowing what to do hey, garrett, why don't you speak to me. garrett from texas >> caller: boo-yah, jim. how are you doing today? in i'm doing okay. i missed the darn eagles parade but we got to do what's right. how are you doing? >> caller: doing well. like a kid in the candy shop with money on the side and stocks coming down >> okay. >> caller: so i've got two questions for you. both having to do with health care and a pharmaceuticals company. first one we know bezos, buffett is getting together and when amazon bought whole foods, the rest of the grocery stores tanked i'm curious any health care stocks may not be affected by this new health care company i originally was thinking about it >> it's getting hit because it is a stock so it's going down. i like -- i think your selection

is excellent this is not -- this connoisseur hum, jpmorgan getting together with berkshire hathaway and bezos is lowering the cost of their own health care of their companies which would raise their companies' gross margins that allow them to take the good people from everywhere else. it's a brilliant hoff and have to tell you it makes me want to own all three stocks so i'm recommending berkshire and jpmorgan right now and i'm recommending amazon to you, garrett. those are the way to go. let's go to carolyn in florida >> caller: hi. thanks for taking my dacall i love you and yay for the eagles >> thank you very much >> caller: i have a few questions. oftentypes there is a change of leadership when the market has a correction. >> true. >> caller: if stocks are leading into the correction who dow think will be the leader coming out? >> you know, i was talking to my

friend bob olanglange. what's your time frame when do you need to know where the new leadership is? do you want to buy into the sell-off i need some info about your suitability. >> caller: i want to buy into the correction. >> then you'll buy fang. >> caller: i have it. >> classic what we call long dated assets wall street gobbledygook you have to buy stocks that have a long-term vision with a ceo who has a great vision that are not set with the economy and, yes, that's facebook, amazon, that is netflix, i am not going to recommend google here i would rather see you be in y,obe. he fan mom and dad got a new car...

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we all recognize since the great volatility nightmare kicked into gear with the crash on monday, things aren't the same but we can't quantify what's changed other than that if you blink you might miss what just happened in the stock market

however it began to dawn on me last week we are in a bitter adjustment period where we're all trying to figure out how much of a recent decline in stocks was based on real earnings, how much was pegged to the bond market and will be rolled back and how much is this kind of craziness i'm talking about the vix. we did an interview with the ceo of a rapidly growing pizza company. right before i started pie first question i looked at the average, dow up 240 points and i'm thinking to myself, okay, we survived another bun but good. when the interview ended at 4:05, the dow is down 19 and almost every stock that was up at 3:48 is now down. some down hard now, my initial reaction was we could have said the same thing at 3:48 the day before every stock that was down a little closed up and up big. that's how crazy things have gotten today's 1,000-point decline clinched my thinking the chief culprit was the

derivatives but there's another reason we keep swinging so wildly we're trying to answer an important question about what got us to this period to begin with did stocks get so high because business was good. or is this all about a correlation to the bond market that's now turned against us because the central banks aren't going to print money anymore the fed is not buying and business is better so rates are going higher because if it's all about earnings, you can feel a lot more comfortable buying high quality stocks in the way down knowing that the vix madness has to end but if it's about the bond market unfortunately with or without the collateral damage the vix trades are causing we will experience this decline every time the ten-year treasury ticks a little higher. at least until we take stocks so low they seem undervalued and are somewhat immunized against any further jump in rates. if the bond market is in the driver's seat trying to pick individual winners is more of a waste of time than i indicated at the top of the show i'm not saying that's the case but the very possibility that

bonds are totally controlled creates a real sense of helplessness if you believe bonds are the only thing that matters buying stocks is suicidal even if the vix disappears your stocks could get hit because the yield and ten-year have jumped and when i started trading, 30 was at 16. but jump to 2.9 and then when it jumps further to 3%, well, you'll want to throw yourself out of a building and we're not going to let that happen you get the picture, though. but that's one theory. let say the earnings were driving the value. i could argue they aren't that investor valued so you could buy the weakness because the whole market has become a heck of a lot cheaper in the last few days here's the problem we don't know if it's the bonds or if it's the earnings. really don't in fact, we can't know right now because of the horrible inverse volatility instruments i keep mentioning they almost make it impossible to determine what's going on they're like the fog of war. all right. look at it like this, we know

we're taking enemy fire but don't know where it's coming from unless the smoke clears so let's use a real-life example. say you're watching the stock of texas instruments. texas instrument, terrific, terrific company make a lot of tips that go into internet things, so it was at 120 not that long ago and fell to 104 yesterday and dropped to 97 here today. now, you might think that that looks like a buyable pullback. this is a terrific stock if you put it in a market order at 343 you got the stock at 104. but then texas instrument's stock was brought down on another conviction derivative debacle. like that xiv thing that stopped and you were down 3 bucks just 17 minutes later before getting clocked for another 4 points and change today. so much for that dip dip buying is always been working. but not now. now, we can sit here and say, well, that was because yesterday's ten-year auction

went badly and i did get the ball rolling or we could admit that today at least it was because of a bunch of hedge funds blew up thanks to their idiotic beds against the volatility index putting pressure on the whole market as they had to raise cash by selling the s&p 500 of which texas instruments is most definitively a member. did anything happen to texas instruments today? to merit the stock being down 4, of course not. i don't want you to be confused many of you are. as this volatility instrument crisis deeps and continues to distort prices until they're wiped out i think many investors will come to the conclusion and this is tough for me to say because i know we just got a lot of people to realize how great stocks are but it might -- my conclusion many who just came in simply don't want to be involved in an asset class where you can lose so much money so fast a thousand dow points here, a thou dow points here and pretty soon we're talking about real money. thank you senator dierksson.

we're now in a place where we visited a couple of times before where you can't trust the prices it's like a flash crash every day. remember when i was out at the flash crash, go buy that procter & gamble it's not real. a lot of prices don't seem to be real intraday but they don't bounce down. people don't care if it's because of bonds or vix blowups, do they? they just know the market isn't working right or if it is working it's working against us. it doesn't matter if the price journey's multiple is high like for fantastic stocks like vment ware adobe, sales force or low like for micron which is now the cheapest stock in the s&p 500 on forward earnings or gm if you buy and you're down big the moment you get the report you aren't going to put another dime to this market because it's not trustworthy. when the market is not trustworthy, well, after a while no one buys, they sell and they keep selling until prices stabilize and where it means something pertinent to the

value of the enterprise underneath right now you may think, hey, we got so high that it was not pert nebts and it's down low enough it is but we don't know. from the looks of things we're still stuck in the vortex that produces a bargain at 3:43 p.m. yesterday and turns into a terrible mistake 17 points later. and then hideous losses further. that's quicksand you can't stand your ground on quicksand. so people will step aside until the ground hardens no matter what the price even if stocks are cheap. even if interest rates go down, not up can you imagine that anything can happen. what can i say that's the situation we're in and until the big volatility bets unwind and gave you what the symbol so you can mon forthem yourselves you want to see the volume go down we'll be tuck in a no man's land. i can't make it better but at least i can explain what's happen so you don't drive yourself crazy wondering what the heck is going on hey, i'm not going anywhere tonight. you shouldn't either we're going to get through this

together after "mad money" tonight stay with us for a cnbc special report with my friend tyler mathisen and, well, of course, me a down 1,000-point lightning round is coming up next. can you believe i missed that eagles parade for this i did the right thing. i think. at at&t, buy one iphone 8 and get one on us. that's one for you, and one for... your bbf your backup singer. your frenemy

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yes, even on a day like today especially on a day like today it is time for the lightning round. and then the lightning round is over are you ready, skee-daddy? time for the lightning round frank in new york. frank. >> caller: boo-yah, jim, from syracuse, new york, by way of brooklyn wondering -- >> take waze what's up. >> caller: what about awky what are your thoughts. >> nice, i know that company been to that town. here's my take not bad. not great. not bad. i kind of edgy but historically good stock to ace in georgia.

ace. >> caller: hey, great twitter snap boo-yah. what about s.l. alpha bravo. >> ace shall that's not the place, ace i think you can buy intel on a day like today or nvidia if it's down tomorrow. jim in missouri. jim. >> caller: jim in branstad, missouri ipo, you said wait before buy? here we are. we are here. admittedly there but now at the same time we got so many fabulous stocks that are down so much, i would rather have you buy vmware inis in new york >> caller: hi, jim it's ennis >> ennis >> caller: in december you recomme recommended me to buy which i

did -- i made like 15 to 20% on it then in january it started to go down what do you recommend now? >> i don't like the oil stocks you know what, i want to tell you what some of the mass limited partnerships anyone that yields that, those are probably good. that, ladies and gentlemen, is the conclusion of the lightning round. unisnnouncer: the lightning rod sponsored by td ameritrade td ameritrade lets you trade select securities 24 hours a day, five days a week. that's amazing. it's a pretty big deal. so i can trade all night long? ♪ ♪ all night long... is that lionel richie? let's reopen the market. mr. richie, would you ring the 24/5 bell? sure can, jim. ♪ trade 24/5, only with td ameritrade.

look, i know how easy it is to freak out about how the market keeps getting beaten to a pulp but as i've learned over nearly four decade, panic, not a strategy when everyone else is going craze zhu you need to remain calm, collected. there is a bull market somewhere. it's in some special situation stocks take a nice, deep breath meditation always worked for me and fundamentals, well, let's just say i got one i got a stock i would buy. the market may be still deeply unsettled but there are good things happening in the economy. sooner or later that will matter even though they won't generate the same amount of euphoria as a few weeks ago. what have we missed? ab, but this, the first major acquisition called west rock a maker of packaging products bought another company you never heard of unless you watch the capstone, a competitor,

$4.9 billion i got to talk about it because i like it. this is an important deal. i think it's worth considering the implications for westrock and the industry because when investors start to care about individual companies again which them, this group is probably going to come to the fore because right now i think the paper stocks are hot, well, until this and i believe this one will be a must like rocket when that happens. why do we care about paper and packaging? didn't the sky fall? should we be shakeing? how can you talk about corrugated cardboard which my dad used to sell for a living when the western world is in danger i can hear some people say look at crimer rearrange the deck chairs on the "titanic." at some point it will be over and you want secret on your shopping list as poised to rebound. i think westrock belongs on that list here's a paper and packaging powerhouse that's the number one and number two player in all sorts of consumer markets like

the stuff you get when you order from amazon. what makes me like it other than the fact that paper cops are exactly the kind of cyclical companies you should own at this point in an expansion. don't believe me go back to "real money. this is where you are. the capstone deal is expected to be additive to the company's earnings they're forecasting $200 million in performance improvements. do they matter call me crazy, they do even better because paper is still mostly a commodity and therefore precisely in the sweet spot of what works during a major global economic expansion at this date the deal gives them more scale most importantly by purchasing capstone westrock takes out a competitor this is good not just for them but for the entire industry. nothing is more harmful or ruinous to profits than competition. and removing a competitor helps make it easier for the remaining players to avoid getting into price wars with each other you may call that that

collusion. i'm trying to help you find ways to profit from them. in short the capstone acquisition is subjectively good for westrock better than it was a week ago but it's been dragged down that's why i'm talking about it trading at 70. now 61 even though it's so much better. we know westrock is doing well because they reported a strong quarter the same day they told us about the deal so i feel blessed. stock is selling for less than 14 times earnings estimates. go with international paper which is the other play for the box that comes to your doorstep. this is an amazon derivative, people a lot cheaper than amazon. westrock is good what's good for them is good for ip the bottom line, i know i should be tearing out what's left of my hair and weeping at the state of the stock market that's not what i do how is it going to do you any good the truth is the world hasn't stopped just because the stock market is getting slammed because of a couple funds and

interest rates ticked up life goes on and all this chaos may be causing you to miss out on an opportunity in the packaging space. the sector that's always been the place to be at this stage of the economic expansion and that was before amazon. westrock makes sense on the capstone deal as does the longtime friend of the show international paper. just be careful to scale into them slowly. want to buy 100 shares buy 25 and then wait three or four points but you will have the wind at your back the moment this volatility spell is over and i don't want to you have bought nothing into the downturn i am not going anywhere. you shouldn't either we will get through this together haven't we always, 13 years' worth. after "mad money" tonight stay with us for a cnbc special with my friends tyler mathisen and michelle caruso-cabrera. we'll puzzle it erov and make sure we're all smarter stay with cramer

what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley (nadia white) the moment a fish is pulled out from the water, it's a race against time. and keeping it in the right conditions

is the best way to get that fish to your plate safely. (dane chauvel) sometimes the product arrives, and the cold chain has been interrupted, and we need to be able to identify where in the cold chain that occurred. (tom villa) we took our world class network, and we developed devices to track environmental conditions. this device allows people to understand what's happening with the location, but also if it's too hot, if it's too cold, if it's been dropped... it's completely unique. (dennis woloshuck) if you have a sensor that can keep track of your product, it keeps everybody kind of honest that way. who knew a tiny sensor could help keep the food chain safe? ♪ remember to stay with us on

this special report with tyler mathisen and michelle caruso-cabrera but let me just mention something, in the time i have left, this whole thing could end in a day or two if we wipe out these people and you say why didn't i buy anything? i want you to listen to me on this nvidia which you know is one of my favorites. they did unbelievable numbers, gross margins were great i have to look at this because i have done the work but i need more the gaming segment rose 29%. datacenter was up 105% trouncing the consensus. crypto mining, yes, if you like that bitcoin stuff, it was big for them they are raising their profits and return 1.25 billion to shareholders even though it's one of the greatest gross stocks of all time. they delivered and delivered some more. yes, this quarter from nvidia was the single best quarter for 2018 and it happened in this madness. i think this stock would be up 50 points on this quarter and it won't be just reminder, nvidia, amazon,

facebook, these stocks are coming down. they're getting interesting. yes, apple is coming down. you can say, well, hold it weren't they interesting already? i'm talking about madness and profiting from it. i like to say there's always a bull market somewhere, and i promise to find it for you right here on "mad money." i'm jim cramer, and i'll see you tomorrow. "mad money." i'm jim cramer see you tomorrow >> announcer: on this historic week on wall street, volatility roars back monday the biggest point drop in the history of the dow closing down more than 1,100 points. >> this is a real blood bath. >> the market just buckled under stress of its own making >> announcer: tuesday, a day of ups and downs, but ultimately rallying to end on a high note. >> we are continuing to attract these wild market swings. >> announcer: yesterday the market searched for stability. >> whether the selling is over, i don't know, but you see how choppy it's been. >> aou