Dow nosediving 243 points. S p coming in 1. 44 . Nasdaq falling 0. 88 . There were actually some positive signs that were constructive enough to merit an honest discussion. In the interest of explaining the prevailing pain, lets talk about what made things hideous to begin with. The stock price has been beholden to the expectation as to what people thought companies would earn or thought they would say. It is about Great Expectations and then having your stock clobbered. Companies go higher. Im asking. What happens if you have a company that has super duber i love you, you love me expectations and it fails and fails spectacularly . Sell sell sell sell sell sell sell sell. Then you get the curious case of dupont. If missing earnings were an art form, this dupont quarter would be a picasso. The guernica of earnings. If it werent for the lock out i would indeed throw the stanley cup. If it was an olympic contest, i would be giving this a high dive belly flop. Dupont has noxious earnings emissions. They announce the hard results giving you a heads up. Duponts miss, it was monumental. When a company is about to miss wall street projections by more than 5 , a company says it out to know ahead of time. That is a wikipedia entry for one you are to preannounce. Earnings fall off and disappear. There were so many areas of disappointment, using everything that you see and eat that are white. Management should have been able to flag the shortfall weeks ago. Things must be amazing away from these areas of sure disappointment. Just the opposite was true. Lets just say that duponts ceo is no longer the teflon boss. To seal the deal, the teflon business, it was awful. I talk about winners in my charitable trust. Dupont scalded the trust. There was no indication that anything was wrong. I thought things were fabulous there. Of course dupont wasnt the only brutality. 3m cut its outlook. After sinking like a stone today, they are up 9 . A gigantic move for a large cap dow stock. I wouldnt be surprised if it is put in a bottom. 3m, give it a day or two and then you may want to pick one up. 3m shouldnt be in the same sentence as dupont. Apples sickening decline. Calculation in which ipads werent selling that well. I still say dont trade apple, own it. All i can tell you is it crushed the stock but good. Given how big apple is, the nasdaq pin action could not have been more lethal. You might ask, with apple 3m and dupont throwing jalapeno juice into the bulls eye, what positives did i spy . Everyone sees the market going down. Im looking at things underneath that you may not be seeing. First google. The hideous decline last week, google stopped going down and rallied before straining the gains. On a hard day, google closed up. Given the terrific report from facebook, i bet it continues the trend. Facebook talks about the positives. And then there are the consumer names. Let me tell you something that i dont think you know. It is not shocking that europe is bad. Look, how about the consumer in america . Coach . You see that . Remember coach started the landslide. But coach righted itself today and delivered a solid number. You know, if the stock market had been flat today, the stock would have been up 10 . Whirlpool gave us a standout number. Harley davidson, reminiscent of polaris, remember the atv guy, ask yourself you might not be able to hold off from getting a new dryer or washer, you can pass on a harley. Oh man, i got to get an atv. I cant get to work, i need an offroad vehicle, coach handbags, i saw them on canal street for like 9 the other day. We get terrific numbers and after the bell panera delivered a better than expected quarter and Buffalo Wild Wings report which shows the report. Im not going to tell you that these stocks can cause the market to bottom. As long as we have gut wrenchers like dupont, and coach isnt goes to turn things around. Harley cant blame 3m. But i want to point out that when you get a real pasting, you cant find anything that can buck the trend like coach. That is why i rated this decline as nothing worse than a garden variety sell off. Here is the bottom line. Declines play havoc with the market. When you had higher expectations. But when stocks that led us down, you may be better off then you think or less worse off . Rob in florida, rob. Booyah to you from miami beach, how are you . Real good. How are you . Excellent. I want to know what you think of monster beverage in light of the recent negative articles in the new york times. How do you see these caffeinated drinks moving forward . I told my kids to switch to red bull. Stay away from monster. It is a momentum stock. When you get even a hint of the fda being involved with a monster drink. You know what, i love this stuff. No, i think you got to be careful. I think you got to be out. Lets go to al, in florida. We have miami beach, we have miami. Lots of volatility. What is up with that stock . Where do you see disc drives, al . They are in pcs. And people arent using pcs. Not like they used to. It is a shrinking market. Western digital is shrinking too. Mary in maryland . Super value. I bought it at 303 and i watch your show all the time. I would like you to give me information at super value. At 303 would you hold it . I need you out of it tomorrow morning. You are playing with fire. The company you have all of these stories how they make you a tender offer. Please, you are lucky that it is not lower. You need to have a 3, 4, 5 stock. May i suggest it is sprint. Brutal day. No way around it. But a lot of it has to do with managing expectations. The companies that really blew up today didnt manage them very well. It is how it always feels when the market is down this badly. Later on this week, i bet you we put down a buy. Mad money will be right back. Coming up. Glossy coat . Ppgs future looks bright. Cramer paints you a picture when he talks with the ceo. And later, midas touch . The market plunges and uncertainty runs rampant. It is time to take cover in the shiny stuff. Cramer is tracking the technicals on an all new edition of off the charts. Plus, drug problem . Isis pharmaceutical stock collapsed last week after the fda expressed safety concerns over its experimental treatment. Can it recover or is it a prescription for pain . Cramers exclusive with the ceo is just ahead. All coming up on mad money. Dont miss a second of mad money. Follow jimcramer on twitter. Tweet jim madtweets. Send jim an email. Or give us a call at 1800743cnbc. Miss something . Miss something . Head to madmoney. Cnbc. Com. The lesson this earnings season is not that all companies are doing terribly. That is not the right take away. There are some Silver Linings. You need to know where to look. Dupont, giant Chemical Company missed numbers in a major way. Just because dupont disappointed doesnt mean that every other Chemical Company is doing badly. When you consider how bad dupont was, some of the positive results seem more impressive. Ppg is a long time cramer fave. Makes all kinds of coatings. The big difference between ppg and dupont, ppg have been more aggressive about moving away from commodity chemicals and focusing on value added chemicals that cant be easily duplicated. They are working with georgia gulf. That deal will complete ppgs transformation. But even though the deal hasnt happened yet, ppg posted a five cent earnings beat off a 2. 19 basis. Revenues were basically flat. That was because ppg took a 4 hit on foreign exchange. They saw a healthy aerospace business. European weekend not so hot. Ppgs Balance Sheet is strong, getting stronger. You are getting a fantastic entry point in a stock that rarely pulls back. Yet, after the mess we got from dupont, lets talk to chuck bunch about the quarter and where the company is headed. Welcome back to the show. It is great to be with you again. This was clearly today a day that demonstrated that being commodity chemicals, which dupont is still in, is just not working in the world of globalization today. But your strategy, total vindication. As you know, these commodity chemical businesses can be volatile and cyclical. We have tried to become a more consistent Specialty Company and we believe we have done that with the georgia gulf transaction. What is better about a proprietary Chemical Company . Typically you have good points of differentiation and Value Creation for your customers. These are proprietary innovations that you can add value to your customers such as the automotive ore Aerospace Companies where you are bringing corrosion protection, new designs, decoration, these are the types of things that let your customers appreciate the things that you do and they can add value for their customers and it gets a tighter relationship. You also have more consistent sales and earnings and you are not as exposed to the ups and downs of the economic cycles or pricing that you can get into. Chuck, you also had excellent auto results. Excellent. Now there are companies in this country and in europe that are doing, very, very well in the auto business. Yes, jim, the automotive oem business globally is still quite healthy. Were going to see 5 to 6 global growth. Here in north america, the business has been excellent. We are seeing so far, almost 20 growth here in north america. It is a bit of a renaissance here for Automotive Manufacturing in north america. We are benefiting from that trend. Yes, we have seen weakness in europe. The overall strength of our business, what we have been doing for our customers, or the localization of our capacity in the emerging markets in china or south korea or mexico are really helping us to capitalize on what has been a solid trend here in north america. One of the big weaknesses in due pot was titanium dioxide, a whitener which has been responsible for 60 of the growth in the last two quarters. You are a buyer of titanium dioxide. I presume that duponts woes could be good for your company. Weve experienced quite a bit of inflation over the past two years. And still, year over year in the Third Quarter here in 2012, the prices for tio 2 in north america are higher than they were a year ago. That trend has changed during 2012. We have seen some declines, prices are still higher than they were last year, but we are finally getting moderation in this chemical commodity that is an important component in our formulations and we think this would be a help for us Going Forward as we no longer have to engage in these aggressive measures to reduce the impact of this tio2 inflation in our raw material cost picture. One last question, when you are doing this deal with georgia gulf, people can tender their ppg stock if they want. If you are a holder of ppg, would you tender . Right now, i would encourage all of our longterm ppg shareholders to continue to stick with ppg. This has been a great story for them and for us. But this is still an excellent opportunity to acquire georgia gulf shares. We think the combination of our commodity chemical business with georgia gulf is going to be a good win for both companies. Georgia gulf is going to be a stronger commodity player exposed to the player on the pvc side. We think it will be a good transaction and we think the prospects for both companies are good. Longer term, this should be an excellent value creator for us. It is nice to have something to bust the gloom of the chemicals today. Totally delivered. Not everybody had a tough quarter. They had a good one. Coming up, midas touch . The market plunges. Uncertainty runs rampant. Is now the time for investors to take cover in the shiny stuff . Cramer sees if gold paves the way to profits on off the charts. And later, drug problem . Stock collapsed last week after the fda expressed safety concerns over its experimental treatment. Can it recover or is it a prescription for pain . Cramers exclusive with the ceo is just ahead. Ally bank. Why they have a raise your rate cd. Tonight our guest, thomas sargent. Nobel laureate in economics, and one of the most cited economists in the world. Professor sargent, can you tell me what cd rates will be in two years . No. If he cant, no one can. Thats why ally has a raise your rate cd. Ally bank. Your money needs an ally. N you take a closer look. At the best schools in the world. You see they all have something very interesting in common. They have teachers. With a deeper knowledge of their subjects. As a result, their students achieve at a higher level. Lets develop more stars in education. Lets invest in our teachers. So they can inspire our students. Lets solve this. After another brutal day at the office, just because the averages are getting clobbered, that is not a reason to sell everything. That might be a reason to do some buying. You know what has worked . Gold. Yeah, gold is a hard asset. When countries are debasing their currencies, it retains its value. You must have gold in your portfolio. Its a currency. I prefer the gld. I dont like the stocks as much, but they have been hot, too. It feels like the shiny stuff is being pounded along with everything else. On this hideous day, i have good news. There are signs that gold is about to make a major move higher. Coo at optionpit. Com sees higher prices in golds future. The key to the thesis is a little known indicator known as the gvc. The George Victor caesar. The vix measures prices on the s p 500. We have talked about it before. But look at this chart about how it works. When traders are worried about the market being about to get thrashed, the vix will rally. You get the market going down. On the other hand when traders are more confident about the market, the numbers fall. Pretty good proxy for the broader stock market. There is also a volitility index for gold. Gvz measures the level of fear about gold prices. Last wednesday the gold volatility index closed at its lowest level since the Chicago Exchange began listing options on the god. I didnt. The lowest level it is at five plus year lows. Since last wednesday it has crept back up but it is still at low levels. This is an astonishing chart. Traders arent worried about gold. When it reaches these low levels, we tend to see big moves, huge moves in the gld. Look at these, every time. Look at this. Sebastian has noticed, every time the gold vix hit lows, the gld has moved pretty darn hard. It is not a coin toss whether it is up or down. In almost every case where the up or down has made a low, it has happened this year. And then again with the rally since august, out of all of the six times where the gold vix made a low, the only time it went down was in may. What does this say . When we see the gold vix at extreme lows, that move is far, far, far more likely to be a rally than a sell off. Sebastian has predicted a rally that makes pretty good odds. I will take five out of six. It was at the extreme of extreme lows. Check out this chart of the gld going back to the beginning of the year. Gold is now at a sixweek low. Sebastian thinks the precious metal will leave these numbers behind. That is in part because of the sell off. Sebastian, he sees the gld making a run at 180, in a move that is totally contrary to anything i heard today, yesterday or friday. Based on what is happening with the gold vix, he thinks that it could outperform what it did in august. You need something safe you can circle the wagons around. Based on the action in the gold vix, there is a five out of six chance that the direction of this move will be higher. You know me. Im a huge believer in gold. Not for trading but for investing. I feel like it is just the nudge we need to get you to buy gold into his unwarranted weakness. Ginny in california. This is ginny from california calling from california and my partner knows it and he is okay with it. Thank you so much. You have put me through Financial School and i have followed you since i took over my own accounts in 08 and i would not have been able to do what ive done without you. Thank you for subscribing to action alerts. How can i help . Okay. As an action alerts member i have followed you into many stocks. The one im calling about today is one i bought when you said we should all have gold. Now you dont mention it anymore. Am i wrong about staying in iau . You are right. This is another proxy of gold. You are in great shape with that. I think that is about to rally. It has been doing nothing for a while. I thank you for watching the show and those kind words. You made my day. Jeff in new jersey. Hi jim. Jeff . Im with bonds for you. We do a balanced investing strategy. I just sold am at a profit and im looking at gold again. What are your thoughts . I get the charts delivered to my door. I have no other life and agnico eagle is clearly breaking out. Im reluctant to tell you to transfer to barrack or auq. But if aem is breaking out, the gld will be supreme. It is so right here. You know i like gold as part of every portfolio. And dismal days like this one are a great reminder how gold, the gld and the charts are going higher. Dont move it is going up. Hmm, it says here that cheerios helps lower cholesterol as part of a heart healthy diet. Thats true. But you still have to go to the gym. The one and only, cheerios if we want to improve our schools. What should we invest in . Maybe New Buildings . What about updated equipment . They can help, but recent research shows. Nothing transforms schools like investing in advanced teacher education. Lets build a strong foundation. Lets invest in our teachers so they can inspire our students. Lets solve this. Quanyone have occasional constipation, diarrhea, gas, bloating . Yeah. One Phillips Colon Health probiotic cap each day helps defend against these digestive issues with three strains of good bacteria. Approved [ Phillips Lady ] live the regular life. Phillips. It is time for the lightning round. Rapid fire calls. Play this sound and then the lightning round is over. Are you ready . Dale in illinois. Dale . Mr. Cramer. Whats up . Northern Illinois University husky football booyah. Love the program. Whats up . We are 7 and 1 and should be ranked but we play in the mac and nobody pays attention. No, we do. We go through go ahead. All right ive got a stock that has an uphill battle. Its a steel company. High beta. It was down 6 . Earnings report did not help. The stock is ak steel. No, man, come on. Sell sell sell sell sell sell sell sell you are in the majors. Lets go john in new hampshire. Cramer lets get a big booyah from the university of new hampshire. What are your thoughts on omni Vision Technology . Sell sell sell sell sell sell you dont want to