Since this decline began were beginning to see the necessary ingredients that make a bottom possible. Put simply were at a moment where some of the biggest boxes of my checklist, some growth in china maybe, a statement from the fed that it needs to think twice about rate hikes because of the newfound weakness in the economy or a stabilization in oil were to occur then we could have a real oversold rally on our hands of descent proportions. Were the most oversold we have been in ages and the indices about bulls and bears show a remarkable increase in bears. The most since november 2011. I admit theres very little to like about this market but after today you did some amazing you saw some amazing carnage today. And the Fastest Growing techs were slaughtered. Fang got taken out and it was no it was machine gun. As i said the other night that box has to be checked before we can bottom and after a couple of days like today i have to wonder, boom, it hahn been checked. After hours bashing of go pro. That stock had already been down so much. Who would think it would go down again but we can and will go lower from here but its almost impossible to nail the bottom which is why my Charitable Trust came off the sidelines and bought some stocks of Excellent Companies with great fundamentals and good yields. If you try to wait for the Perfect Moment youll be too late as nobel ever goes off signaling a bottom. Youre never going to hear that sound. All that said i recognize that this is a truly horrific environment where almost nothing works. Its brutal out there. Lets consider the ridiculous case of the stock from General Motors. Ats sober reminder of how difficult it can be to speculate and let alone invest in any stock right now. Gm hit the trifecta. Estimates all the way up to 525. It yields 5 . The nominal return versus treasuries or Corporate Bond with descent protection from down side with that yield. It augmented its buy back tacking on 4 billion to its already bountiful 5 billion commitment. What happens to the stock . After being up more than 1. 5 in premarket trading gm spent part of the day down. The stock closed up just 19 cents, thats insane. You dream all your life for a company that announces such fabulous news. Especially a stock down 23 from where it was when things arent nearly as good as now. Gm is stand the out. Gm is doing much better than they are. We hear all the time that the stock market is expensive. You hear it. I hear it but General Motors sells it six times earnings. Average stock however its growth is much better than Many Companies in the s p 500. None of that matters. The action is the absolute definition of what happens in a bear market. The one for autos lets say its been going for a couple of years now and its worth investing quarterly or not investing. Gm is reminded that even perfect stock with perfect opportunities just arent working right now. How about if things arent perfect. Lets talk about the horrendous case of csx. Heres a stock of a very well run Railroad Company that traded 35 a year and were indeed were severely disappointing. It gapped higher. What was that saying . I think people figured all right. What the heck. Its down so much. We didnt need to hear what the company says. Its just time. The decline is baked in but then there was intense buyers remorse. It said that 2016 will be a hard year because of low Commodity Prices a strong dollar and might have caused an Energy Market transition. I think the first two are cyclical meaning they can change. Prices can go up again one day but i dont see how until china gets up and going the fact is unless the fed comes out and says in light of the turmoil and declining commodities we cannot get a timetable for the next rate hike. It must be data dependent and then the dollar otherwise will continue to go higher. Playing havoc and making exports much more attractive. Thats what csx is facing. A freight recession. But its the third negative. The Energy Market transition is truly devastating. A true secular decline involving a wholesale shift away from the even though it still generates 34 of the power from the country. Its being replaced rapidly by natural gas and that will only accelerate if Hillary Clinton takes the white house. Good for your lungs, bad for the railroad stocks. Plus the export market for coal is declining quickly. Falling precipitously, why . Steal industry unraveling in front of our eyes. Last year at this time they predicted double digit earnings gains for 2015. Now the company is predicting an actual decline. Revenues fell a staggering 13 this past quarter. Cxs likes to break down revenues all for comparisons versus a year ago. But dem cals, domestic goal, metals, phosphates are all unfavorable. Only neutral. Thats an incredible decline. No wonder management said this economy is indeed in a recession for freight. And i think it only gets worse if the fed keeps tightening. No way autos will be better taking that category out of it. Im of a mind to put the whole Federal Reserve in the wall of shame if somebody doesnt come out and say well be data dependent. Dont worry. We dont like what happened either. We see it. Thats how the stock fell more than 5 today. One point down. Its including the airlines. Heres the bottom line. If they have a descent rally while the worst one with the worst news flow can fall further we have to respect the bear here. However we also have to be disciplined and because were capitulation a bottom can be worse than you think. Joel in iowa, joel. With oil going down is etp a buy, sell or hold . Subscribers to action owners plus. Com we spent a quarter of the time talking about etp. The company can cover the dividend but this is a very unsafe environment. Anything can happen and as rusty brazil told us on friday the author of the domino effect this is the worst oil market in years so they can cover it but will they . After kinder morgan, i dont know. I think they will but i dont know. Robert in pennsylvania, robert. Hey, jim. I wanted to ask you your opinion on valeant. I have so many problems why do i have to go down the food chain . Thats why you have to think about it. This is not even in the league of the major farmers that i flow but were talking about major fabulous American Pharmaceutical Companies going down. Just crashing. What do we need with valeant. Don. Cramer, aloha. How you doing man. A great year, 54 to 94. Today got slammed 87 i know the aerospace and flight systems. Where do we stand with defense systems. This is a great call. Im of two minds of this. A real theme for the show. There is no doubt in my mind that orb at the atk is doing better than any company that i deal with. The Defense Sector and number one sector in the stock market. Second, it doesnt matter. All stocks are going down right now but it wont always be like that and well be talking positive about oa. Sure a lot of these declines at least for now. And then wait for that oversold bounce because of the negativity and because of the oscillator that shows how oversold we are. Mad money tonight. U. S. Stock is partially dictated by the weakness in china. So how will it impact you at home . Ill give you the whole skinny. Plus heres an interesting one. Match group. We havent talked about it. Its up 60 since ipo in 2013 but you know what, maybe you dont know it. Ill reveal it. Stay with cramer. Dont miss a second of mad money. Follow jimcramer on twitter. Tweet cramer, mad tweets. Send an email to madmoney cnbc. Com. Its 180743cnbc. Money. Cnbc. Com. Your clever moves wont stop the cold and flu. But disinfecting with lysol can. Because lysol wipes and spray are approved to kill more types of germs than clorox. Including those that can make you sick. For a healthy home this cold and flu season. Lysol that. Working on my feet all day gave me pain here. In my lower back but now, i step on this machine and get my number which matches my dr. Scholls custom fit orthotic inserts. Now i get immediate relief from my foot pain. My lower back pain. Find a machine at drscholls. Com cell phone rings where are you . Well the squirrels are back in the attic. Can i call you back, mom . He says its personal this time. If youre a mom, you call at the worst time. Its what you do. If you want to save fifteen percent or more on Car Insurance, you switch to geico. Its what you do. Where are you . Its very loud there. Are you taking a zumba class . Olay regenerist renews from within, plumping surface cells for a dramatic transformation without the need for fillers your concert tee might show your age. Your skin never will. Olay regenerist. So far we have been joined at the hip with the collapse in the stock market. If you want to understand how a communist stock market has become the most important force situation in the first place. Its not talked about. Two years ago nobody cared about the shanghai composite. That thing you can be forgiven for assuming its one of the complicated items that nobody ever orders but its no laughing matter now. This foreign index has become along with oil, the tail that wags the dog of the u. S. Stock market. How did we get to this point. How did this happen . Take a look at the chart of the shanghai composite from 2010 through 2013. You can see that for years while u. S. Stocks rebounded from the Great Recession the Chinese Market was stuck in a terrible rut. Declining from 3100 to 2100. The reason, china, well, 2010 was the year when after decades of explosive growth chinas economy peaked with its gdp from 12 to 8 at the beginning of 2014. So the market anticipated that. In short, that earlier decline two years ago it was easy to believe that the long march higher had finally come to an end. At least for the stock market. But then Something Big changed. In april of 2014 the communityist party announced the Stock Connect Program which went into effect in november of 2014. This connected markets in Mainland China with the hong kong exchange. Making them more accessible to investors around the world. Even though the chinese economy was accelerating it was a wash in foreign money. At the same time, the ruling party decided to create new regulations that would encourage ordinary Retail Investors to come back. But they also did very irresponsible things. Allowing people to open multiple accounts. That truly accelerated it. By the time we got to march of last year when the composite was climbing, outstanding margin loans were at nearly 1. 4 trillion. Thats up just 40 from nearly it was an explosion and people buying stocks would borrow money. As the shanghai composite climbed higher so did the number of brokerage accounts that rose from 70 million up to 181 million in 2014 with another 56 million new accounts being opened on top of that in the first half of last year with many people routinely opening four and five accounts. Now heres the thing about creating financial pollty in a regime like china. Whatever they wish for they can make it happen. Unfortunately it has horrific side effects to the point where you might have been better off doing nothing. In 2014 they decided they wanted more people to participate in the stock market. They got their wish all right but now its blowing up in their face. Or if you want a real life one as opposed to a fictional one its a lot like if you study history. Its a great leap forward. Huge steal producer. They tossed the metal into backyard furnace. Meanwhile none of the farmers had any tools to grow food with because they all were down. Im not saying the interventions in the stock market are on the same scale as the leap forward but the rule with big economic interventions is that the negative unintended consequences plan to outweigh the positives. Put it all together, the influx of, the rising new accounts and then a genuine bubble. Once they opened up in november the june peak. And remember all of this time its accelerating. The product of juice demand and had nothing to do with fundamentals. A lot of the investors wanted to own stocks because they saw you going higher. Their own version of powerball. So when the shanghai composite peaked june 12th of last year continuing to get crushed last summer they all bolted for the xs so of course the communist party steps in trying to stem or slow the sell off. Their efforts range from the legitimate cutting Interest Rates to the extreme like the government directly buying stocks as they do almost every night now and suspending ipos and to be fair these efforts work for awhile. Shanghai composite rallied 16 in the Fourth Quarter of last year and these were all government methods to prop up the stocks. Ive not heard of any real concentrated buying by individuals and institutions. Party decided to extend its heavy handed efforts and play the Circuit Breakers like we have that would stop trading on a major decline. Of course they have to be suspended to because they kept getting tripped like last thursday and now the shanghai composite is down 16. 6 since the beginning of january. 16. 6. A lot more than we are. Look i think the chinese economists are learning as they go. This is a young market. Theyll probably get better at running it but the point im trying to make is the chinese stock market is not representative. The whole boom and bust cycle has been artificial from the start and the whole upside move from the better beginning might need to be repealed. Where does that leave us now. Shanghai composite fell below the line in the sand and 2478 which is where the shanghai hong to that huge innux of foreign money that im talking about. Thats the next line. Personally i think Chinese Market probably needs to erase all of the gains since the bubble began in 2014 much like the tech bubble 16 years ago which means it might have to go all the way down. Something that will be hastened if they let it fall to their levels. At this point below 3,000, the market is now cheaper than the dow or the s p 500 or the nasdaq not to mention the ftse in hon don and stoxx 600 in europe. Its cheaper now. If the shanghai composite goes below it would be selling at 1 times earnings. Thats despite the fact that even if chinas economy is slowing worse than we thought, say 3 and not the 5 or 6 there pick them. So heres the bottom line. If you think the shang high composite needs to return to the level that it was then your target is 2500 down about 15 but if you think the whole rally needs a 28 decline coming. Theres still a lot of weak handed shareholders that need to be blowing out before we get a bottom. At all times i prefer our market to theirs even if it comes down further. If their market goes lower our market is going to go lower too. In tandem with theirs. Bar a spike from the oil or work from the fed that its stepping up its four rate hike strategy for 2016. If you call that a strategy. Much more mad ahead. Has the market met its match with match group . Im evaluating this red hot company. Then one of the best performing players in bio tech last year. I have the exclusive with the ceo. Crowd, powerball, ill tell you what to do with your winnings but of course im getting them so youll just have to learn by example. Stick with cramer. Color wants to help you keep on being you. Nicen easy. We only make the most real natural looking color. So even in revealing sunlight, it doesnt look like hair color at all. It looks like, its a hundred percent you. And isnt that the most beautiful part . Everyone loves how they feel in dark clothes. And to keep those darks from fading. Its free of harsh ingredients, keeping dark clothes looking like new for 30 washes so your love for dark clothes will never fade. Woolite darks. Degree motionsense. The worlds first antiperspirant with unique microcapsules activated by movement, that release bursts of freshness all day. Motionsense. Protection to keep you moving. Degree. It wont let you down. Ugh heartburn no one burns on my watch try alkaseltzer heartburn reliefchews. They work fast and dont taste chalky. Mmm. Amazing. I have heartburn. Alkaseltzer heartburn reliefchews. Try to keep the themes here day after day until things get a little clearer. Last night i talked to you about the dilemma of owning speculative stocks in a different environment. Right hostile. No matter how exciting a story might be if its not airtight this market wont touch it with a ten foot pole. If gm can hit the trifecta, boost earnings, raise dividends and increase buy backs and tread water we have every reason to be gun shy. People are fearful here and theyre afraid. In a bear market the negatives outweigh the positives. Even if it would have been the other way around which brings me to a really intriguing story called match group. Thats the number one Online Dating company that came public this past november. You might know these guys from their flag ship match. Com or okay cupid or of course tinder which has taken the Younger Generation by storm. Match might be the perfect example of how a stock can get derailed and have nothing to do with the fundamental of the company. I mean, if people werent terrifying of owning even some what risky stocks i bet their recommending them. Who doesnt want their hands on the company that owns tinder . But in this market what might have been a positive has become a negative. People dont fret about whether match can monitize. They wonder if the plan will work. They even fear that the competition could displace match and its many subsidiary brands which would make it much less valuable. Now in a less doom and gloom oriented market wed be imagining the incredible Growth Opportunity. Total addressable market. Huge that they might represent if they get it right. After all this app is the future of dating although maybe dating they tell me is too strong of a word. This kind of thing makes me feel my age what do we call tinder . A booty call facile at a to . Arent on it. Maybe theyre just hooking up which means they hook up for a nice dinner and netflix. But back to the real point here. In a bullish or even a neutral stock market i would say you know what, i might feel pretty good about that. However this market is far from neutral. Match came public last november at 12 a share. Soared 20 on the first day of trading. Since then its come right back down to 13 and change. Today as traders and investors just leave a mess. And its come down despite the fact that the vast majority of analysts are overwhelmingly positive on the stock. Monthly active users who belong to subscription based company. I mean this company could be gigantic on top of that match was spun off by Barry Dillers iac interactive and his spin off have a long track record of making you a great deal of money. One of my favorites is up 200 since it spun off in 2005. Its live nation more than doubled since it merged with ticket master in 2010. If match follows in their footsteps it could be a longterm winner. I think it could happen again. Plus match has a proven track record of making smart acquisitions which has left the company with a diverse portfolio including plenty of fish in canada. These guys are the dominant player in the industry with a people with internet connections. Its not like Online Dating is something people are embarrassed about anymore. In north america a third of all dates relationships and even marriages now begin with this kind of dating product. I was just getting used to zillow. Even though the bulk of matchs users are more interested in hooking up than starting a relationship they still leave e harmony in the dust when it comes to match making. They lead to 2 million in its whole history. They produced them over the last four years. Dont forget the rise of mobile changed the game here entirely with a new crowd of younger uses that flock to tinder. Bank of america, bmo barclays all rush to recommend the stock with overweights or buy ratings. At the same time as all of the roughly a month ago Goldman Sachs ruled out a sell rating now i have given the case. The ct that match has seen nice sales up more than 90 last year. The araising Growth Opportunity has over 9. 5 million daily active users. And perhaps by offering a Higher Quality subscription version like tinder plus. A service ten minutes ago and already has a half million subscribers or maybe they can do advertising and make a fortune. However the reason im not founding the table is there is a bear case. Any bear case is terrible right now. Seems to carry a lot of weight. Goldman points out that the enormous scale and much of the Revenue Growth they look impressive. Only 4 million of them came from its organic growth. The point goldman hammers home though is that we dont know if match can monetize its user base as well as theyre hoping. Its much easier to add free users than paid subscribers and in particular goldman worries that match wont be able to monetize tinder. At the end of the day we dont know how theyre going to make it possible. Its going to be trial and error and they fear the process will be costly and ineffective and in this market that will be deadly. I actually find the bull mark much more persuasive. Especially with match trading at less than 20 times earnings. 15 growth rate. But this is the point of the piece. It doesnt matter. Even with an attractive stock. Heres the bottom line. No matter how much you might want to own match in order to get in on the tinder action and this is one of the best ipos. Risky to speculate. As long as you recognize to always go lower. The market stops being. How about andy in california. My question is with the recent downturn the tech sector is it still a buy . Now heres what we are going to do. Have been weighing in and talking about it i want to give you two answers. Until this clears up are the fundamentals good at sales force . Yes. They are terrific. Does that mean anything right now . No. Its an expensive stock. It comes down. We need the environment to change. The environment can change. The fed can change. China can get some growth. We get a clarity on what t on what the earnings are during this Earnings Period and were going to want to buy sales force but the fundamentals are good. Therefore longterm it has to be joe in new jersey, joe. Hello cramer. I loved your show and thanks for all that you do for us. Thank you. I have been considering buying paypal. Theres been talk of google taking them over. And they have earnings with a large market cap. We think this is a company with a great future but were not buying on a take over basis. In this market that is completely the wrong thing to do. Buy it because you like the fundamentals and we like the fundamentals of paypal. If it werent such a hostile market i would be getting some match hand over fist but what im trying to do by using this very sexy name is show you that it doesnt matter. Much more mad money ahead. Success in bio tech hangs in the balance and the all powerful drug approval process but is the the testing . Youre about 246 times as likely to get struck by lightning than win the powerball. Good thing im lucky. Ill tell you what ill do with my winners. A hump day edition of the lightning round with cramer. Ut unlike ordinary diapers, pampers to stay up to so your baby can sleep wishing you love, sleep and play. Check this out, bro. Whats that, broheim . I switched to geico and got more. More savings on Car Insurance . Yeah brofessor, and more. Like renters insurance. More ways to save. Nice, brotato chip. Thats not all, brotein shake. Geico has motorcycle and rv insurance, too. Oh, thats a lot more. Oh yeah, im all about more, teddy brosevelt. Geico. Expect great savings and a whole lot more. Johnsons believes that bath time is more than cleansing. Your loving touch stimulates his senses and nurtures his mind. The johnsons scent, lather, and bubbles help enhance the experience. So why just clean your baby, when you can give him so much more . Everyone loves how they feel in dark clothes. And to keep those darks from fading. Theres woolite darks. Its free of harsh ingredients, keeping dark clothes looking like new for 30 washes so your love for dark clothes will never fade. In this unforgiving market worth buying into weakness. How about Something Like quintiles transnational holdings. The number one Contract Research organization that helps Drug Companies manage their clinical trials. Especially the late stage trials that they spent so much money on. Heres a definition of the growth play. No matter how weak the economy gets people still buy medicine and theyll plow billions into bringing new drugs to market. Thats why the last time in late october they had a bigger earnings beat and raised the guidance. Its down from 80 in late july to 63 and change today. Some of that is because of the whole drug pricing fire storm but i think thats a smoke screen because it really doesnt hurt quintiles. A lot is because the stock market is hideous. Thats how the name is down 6 since the beginning of january. So lets check in with the ceo company is doing and where it is headed. Welcome back to mad money. This is a day where a lot of people feel it crashed. It just went down big. Does that mean that we should be thinking that quintlies a quarter or two from now will not get a lot of new work because the bio Tech Industry is not going to be funded as well. Theres been 74 billion dollars of funds put into Bio Tech Companies and that fund needs to come into clinical development. If you think about it, these Companies Really arent worth much unless their products are in the clinic so for Companies Like us we expect to see that 74 billion of funding spent. What will be the drivers then . Were going to see their drugs . When i see the Big Pharma Companies they are not spending as much money on testing. So theyre doing partnerships with quintiles. If you look last year we had 45 new drug approvals and you look at that versus the year before it was 41. Most new drug approvals in the United States since 1996 so for us that means that Innovative Drug Development is alive. You talked about the tremendous science that we have driving things like immunotherapies and its hard. You think about Oil Every Day and issues that companies have in different sectors but in our market we have tremendous science well and have innovative drugs coming and because of that were seeing an attractive approval environment and because of that we think 2016 for a business like us can be a strong year. How do we balance that against the political backdrop . . They all think that the Drug Companies make too much money. Dont they have to spend a fortune to get a drug to be able to be so we can use it . Well, its a good question but really the way we see it, a lot of the focus right now is on pricing and a lot of that pricing is around mature products but companies in our industry are largely valued on the innovative drugs in their pipeline being developed now. As long as the country stays interested in Innovative Drug Development. As long as the regulators do and advocates do theres a tremendous opportunity for this industry. One of the great things theres over 10,000 investors Meeting Companies out here that are registered and thousands more waund of the great things is that you meet companies with new mechanisms and new Rare Diseases being targeted and i think if we just keep on this path with the great science we will continue to have more Drug Development and that will mean Companies Like quintiles and pharmaceutical firms will continue to be very successful. Very early they seem to be go and no go. Are many drugs now succeeding where it might have been a much worse ratio five years ago. Theres all kinds of other numbers around but lets say its a number like that. What we are seeing given the targeted therapies, precision medicine, the quality of the products that are being developed right now is theres evidence that theres a higher rate of approval and more success and this is because we understand better than we ever have before the science and given that even a Small Movement from 7 to 8 or 7 to 8. 5 is a really significant movement. Now for us in the industry were really about dealing with an aging society, a lot of scourges like cancer that we have not had enough cures or really therapies for and i think this industry is laser focused on trying to take science and drive it into better cures. But you always feel like wait a second. The guys want to crush the Drug Companies lower thinking about thank you so much, sir. All right. The boi techs crashed. It doesnt mean that its the end of the world for what theyre doing. Mad money is back after this. Re in the city, parking is hard to find. Seems like everyone drives. And those who do should switch to geico because you could save hundreds on Car Insurance. Ah, perfect. Valet parking. Hello heres the keys. And, uh, go easy on my ride, mate. Hm, wouldnt mind some of that beef wellington. To see how much you could save on Car Insurance, go to geico. Com. Ah car alarm sounds its ok as you move, fragrance capsules burst to release extra freshness all day. Motionsense. Protection to keep you moving. It is time, it is time for the lightning round. And then the lightning round is over, are you ready . Its time for the lightning round. Im going to start with jack in texas, jack. Jim, booyah. This is jack from texas. Holding. Test test theres always a bull market somewhere. I promise to try to find it for