And we have all decided it can reverberate into any company with exposure to china. Ford, coach, boeing, goldman sachs. The thing is all crises are pretty much the same in the post Great Recession world. There is the initial shock holy cow theres problems in the chinese banks which shouldnt be much of a shock at all. Until the last 24 hours, no one was really focused on the credit equals gold number one collective trust. Thats the moniker of a 500 million chinese bond that could default as soon as january 31st. Hurting individuals who own it or, well, the aches and pains of China Credit Trust. Another thing weve got to be thinking about. The house of pain. We have endless assurances not to worry because the peoples republic government has it under control. A bank possibly allowed to default there are implications that arent instantly patched up when we have down ticks from the baltic freight index, a shipping rate, a major tell for china. And a not so hot flash merchandise index report from china last night. Then hand in hand with the initial shock, theres the broad panic we had today. That panic was immediately translated into stocks via the s p 500 futures which take everything down. All 500 names, hence the ocean of red on the screen with just a few dots of green. There is no use fighting the initial tidal wave of fear, especially considering the strongest areas of the market have been industrials, techs and banks. These areas have become suspect because so many have ties to china. You want to buy caterpillar not knowing its run up and there is a giant chinese component . You want to be a risky guy like that . You want to be first to come in United Technology and call bottom . Not for me. On the other hand, there is no reason to panic. You heard me. There is no reason to panic. In fact, you want others to panic so that you can buy your favorite stocks for much lower prices than we have had for some time now. Its always easy to say, im cutting and running because of china. Perhaps you should think, you know what, there are real bargains being created here. While china is important to the global economy, its not as important as the United States, which remains strong and on course for growth this year. One look at the robust existing home sales figure that came out this morning, good jobless claims numbers tell you that all you need to know is that we are doing better than they are. Neither housing nor employment here in america should be hurt by the potential collapse. Its still a potential collapse, not a foregone conclusion of anything in china. Because the communists may still save the bank. If you deliver a quarter that was beautiful, the way Union Pacific did this morning, your stock can have a terrific move higher even in the midst of hideous action. There are no railroads that start here and go to beijing. Union pacific is involved in cross commerce on the coast and given the 5. 62 rally, the transports were so strong. Another sign things arent that bad. Day one of the selloff is over. Lets go to day two, tomorrows action. Day two, tomorrow is when it will be too late to sell some stocks. Even as others, particularly the ones that outperformed last years 32 run for the s p might have another tough day. Tonight our job is to figure out what shouldnt have been taken down today. What isnt impacted by china but has gotten hammered as surely as if it its chief earnings stream comes directly from beijing. I spent time on get rich carefully addressing the broad futures led panic should be tamed by you. I will tell you how you should handle it. My perspective can help here. As many people presume its game over exactly when it might be game on. My suggestion for today, unless you have a specific company that reported an amazing quarter like Union Pacific or microsoft after the close tonight, you probably want to sit on your hands. Do some homework on the stocks that were brought low by the futures, particularly the domestic banks, foods, drugs, other health care names. Do a little buying, nothing big. How about unilever with a terrific quarter earlier in the week. Thats a Consumer Packaged Goods Company with a lot of business including emerging market. How about stocks that never seem to come down. Mckesson was up huge today. That will be up again tomorrow probably. Maybe it considers some of the charmed big pharmas like merck or bristolmyers. You got to ask yourself what does the potential collapse of a regional chinese bank have to do with the with price to earnings ratio of bristolmyers . Normally i would say pick up some domestic retailers. They had some earnings difficulties of late. I dont know if they have been sufficiently baked into the market. Not if you look at target or coach. Same with restaurants. The staying power of mcdonalds stock if there is a more disappointing quarter is more amazing. Wendys delivered better numbers. They have no exposure to china. Chewys is up nicely again, given an excellent report yesterday morning. Starbucks looks real good. I think it will be europe thats the star of the quarter. You can also pick up your favorite bond market equivalent here. Clorox and Kimberly Clark come to mind in a classic fight to quality. So do the Master Limited partnerships. The Real Estate Investment trusts that arent connected to retail. How about the Nursing Home Company led by one of my bankable ceos i will talk about tomorrow. Debra cafaro, or lynn energy. That juicy dividend that stacks up well against the ten year treasury. You only get a 2. 77 return if you own the ten year. Real gunslingers out there, you know, this is what they will do. Dont get mad at them. Theyre nutty and they love it. They will buy netflix even though it rallied 54 points today. Perhaps tesla or amazon. The cult stocks spring back first. I told you many times but its better day three material. People always jump the gun. Of course the nat gas stocks should spring back quickly. Normally i would say the holy trinity of social, mobile and cloud. Going with the biotechs and health wellness. They were on a roll so they are up too much to pick at. Especially biogenidec. Plenty of people with big gains who didnt sell today. They will most likely take profits tomorrow. These themes could be more of a day three or day four consideration. Day three is good for the regionals which are terrific to date. They were brought down by the etfs that handle the financials and take everything down equally. I also like many of the special situation plays. Dow chemical and maybe ebay now that they are under new activist pressures. The terrifically performing techs like telco equipment stocks, i want them, but they have china exposure. Normally you dont want to be aggressive on day three. Because you dont know which ones actually have indirect exposure to china. The day four stocks will still be regarded as sales tomorrow by many of the johnny come latelies who didnt sell today. Its not too late to bolt. You might ask, why bother, why do anything at all but sell . Why not let everything come down huge . Here is the issue. Youre being given some incredible entry points that could be erased if the chinese cut rates to fix the situation or bail out the bank that issued the bad paper. No need to rush in. Today is the first day people have heard of the China Credit Trust or credit equals gold number one collective trust. Obviously it wont be the last day. China is the second largest economy in the world. It never pays to be too sanguine in the face of any crisis. Things in the United States are better than they have been in ages. China has this habit of surprising us just when you think youre about to jump off a cliff without a net. Jim in california. Jim caller yes, jim. Thanks for taking my call. Some time ago i bought a lot of Stanley Black decker thinking that as the Housing Market went up, so would the stock. If the housing seems to be on the mend but the stock is still languishing. Whats wrong with my theory and what should i do now . Well know any minute. Theyre about to report. One thing that upset me, that was one of the worst quarters we had. They had problems in europe, with security. Theyre in the penalty box. The comanager of action alerts plus thinks it may represent an attractive buy here. I want to see the next quarter because as far as im concerned the last one was terrible. Mad money will be back. Announcer coming up, time to shine . From paints to solar panels, Ppg Industries is one of the worlds best when it comes to getting things a bright finish. Can the stock give your portfolio a fresh coat of green in the new year . Dont miss cramers exclusive with the ceo. Later, dangerous drug. This biotech has more than doubled in the past year. But is it becoming a biohazard . Cramer is sounding the alarm on one stock that could threaten to hit the reset button on your gains. Is it lurking in your portfolio . Plus, figuring out your 401 k . Putting off looking at your retirement account or still need to get one set up . With the market on a tear over the past year, there is no better time to take a look. Cramer reveals the moves you should make now, when he opens up his playbook. All coming up on mad money. Dont miss a second of mad money, follow jimcramer on twitter. Have a question . Tweet cramer, madtweets. Send jim an email to madmoney cnbc. Com or give us a call at 1800743cnbc. Miss something . Head to madmoney. Cnbc. Com. Vo once upon a time there was a boy who traveled to a faraway place where villages floated on water and castles were houses dragons lurked, giants stood tall, and the good queen showed the boy it could all be real. Avo whatever you can imagine, all in one place. Expedia, find yours. [ tires screech ] [ car alarm chirps ] [ male announcer ] we dont just certify our preowned vehicles. We inspect, analyze, and recondition each one, until its nothing short of a genuine certified preowned mercedesbenz for the next new owner. [ car alarm chirps ] hurry in to your authorized mercedesbenz dealer for 1. 99 financing during our certified preowned sales event through february 28th. On a truly hideous day for the market it can be hard to remember that not everything is horrible. I try to accentuate the positive. For example, tuesday we learned dan lobe, the big hot shot activist investor is taking a major position in dow chemical, planning to push the company to break itself up. He wants to separate dows chemical commodity business from the highermargin propriety business. Thats something dupont did and its something cramer fave ppg has been doing for years and years. Ppg is run by chuck bunch, one of my bankable 21, the 21 ceos i believe in to create value for shareholders like you. His company is the king of all sorts of applications as well as specialty glass and optical products. Under bunchs leadership ppg made you a fortune. The stock is only up 4 since october but its given you a 23 return since april. Its given you a 358 gain with reinvested dividends since i first got behind it in june of 2009. Ppg just reported last week and even though the company delivered an earnings beat with in line revenues, stock initially was hammered, going from 190 the day before to 182 the day the results went out, rebounding to 187. Investors realized the quarter was actually pretty solid. I like the stock into any weakness. Lets check in with chuck bunch to find out more about how his company is doing and where it is headed. Welcome back to mad money. Thanks, jim. Its great to be back. Thank you for the recognition. Of course. Chuck, ive got to start because of the proximate cause of todays decline. A question on china. In your Conference Call you say, look, at this point our macro forecast is up 2. 5 . A little strong here. Obviously stronger in china today. This worry about a chinese thrift, should we take that out of the equation . We still feel good about china. Obviously there was some chatter in the marketplace today. But our businesses are good. We had a very good Fourth Quarter. We are off to what we think is a good start here in the first quarter. We have the Chinese New Year a little earlier this year. That may have an impact here. The automotive businesses, oem and refinish, are very solid. We are looking for a good year in 2014. We came in to the end of 2013 with a lot of momentum. We still feel good about china. I like your boots on the ground facts more than the rumors i heard all day today. I want to ask you about the real positives here. The first one is you really have a bead on the idea that commercial construction in this country could be making a comeback. Yes. We see the commercial Construction Market from several different businesses, architectural coatings and the flat glass business. We saw some signs later in the year, in the Fourth Quarter, that things are improving. Its a little regional now here in north america. Were seeing the improvement in the southern u. S. And a few of the end use commercial segments like maintenance. But we think that things are beginning to turn around. We have waited for a while for this recovery to start. We think its coming now slowly but its coming. Speaking of waiting for a while, i noticed that volumes in europe, which is about a third of your sales, were flat for the first time after nine consecutive quarterly declines. You must be able to get, i would imagine, because i know you cut things back to the bone, some real earnings leverage off even just a flat sales number from europe. We did well in europe despite the weaker volumes over the course of last year. We had record earnings in europe. The Fourth Quarter was encouraging. We had no volume declines. First time. Things were getting better. The automotive business in particular showed some signs of life. Were forecasting that will be slightly positive for next year. We see some of the countries like the uk and Northern Europe as starting to turn positive. Construction markets, still awaiting a rebound, but we see recovery now in automotive and industrial, albeit very modest. I think people have to understand when we say there is a third of your business there, if things get good in europe, that could be gigantic for the swing in earnings for your company. Yes. It should help us. We have seen even the earnings improvement we got on negative volume this year. So were poised to really take advantage of any opportunities in volume and market growth. We see a relatively moderate or no inflationary environment right now in europe on the commodity input cost side. We think were poised to deliver if we can get some volume recovery now coming into 2014. Some single digit price increases. The only person i know with price increases in the last quarter. I know you have a lot of cash. I didnt know there was a paying acquisition on the horizon. It was brilliant. Are there things on the horizon now that you think a year from now well talk about as another good acquisition for ppg . Yes, jim. We have discussions really on an ongoing basis. We have been quite active in these dialogues for some time now. Weve had cash on our Balance Sheet for a while. We expect another good year in 2014 in terms of cash plus the divestiture of the Transitions Optical business. We are in active dialogues. Some of these are smaller companies, but we hope over the course of the next few quarters to realize these acquisitions, to add to our coatings and specialty portfolio. Terrific, chuck. Once again an amazing job. Thank you so much for coming on mad money. Thank you very much, jim. This is another stock. Its just a bankable stock with a bankable man. Ppg, stock broke down. Got to take advantage of the breakdowns. You heard that china is a positive, not a negative. What happens if europe comes back . It could be huge for ppg. Stay with cramer. Announcer coming up, dangerous drug. This biotech has more than doubled in the past year. But is it becoming a biohazard . Cramer is sounding the alarm on one stock that could threaten to hit the reset button on your gains. Is it lurking in your portfolio . Stacys mom has got it goin on stacys mom has got it goin on stacys mom has got it goin on [ male announcer ] the beautifully practical and practically beautiful cadillac srx. Lease this 2014 cadillac srx for around 319 a month with premium Care Maintenance included. Im beth. And im michelle. And we own the paper cottage. Its a stationery and gifts store. Anything we purchase for the paper cottage goes on our ink card. So you can manage your business expenses and access them online instantly with the Game Changing app from ink. We didnt get into business to spend time managing receipts, thats why we have ink. We like being in business because we like being creative, we like interacting with people. So you have time to focus on the things you love. Ink from chase. So you can. A huge portion of investing comes down to credibility. Who can you trust . Its why i devoted a whole chapter of get rich carefully to my bankable 21, the 21 ceos i believe you can count on to create value for you, the shareholder. Seven more on power lunch tomorrow. Things are rarely clear cut. Bulls on one side, bears on the other and youre trying to make a decision. Some experts have more credibility than others. When herb greenburg, a cnbc contributor and my colleague at thestreet. Com, and master of red flags. Warns us about a company hey, im a little tired. You Better Believe i pay attention. Last week, herb wrote a piece for thestreet. Com questioning the sustainability of valiant pharmaceuticals, vrx. Its a big Specialty Firm that last summer acquired bausch and lomb. Maybe the hottest stock in the market. I never talk about it. Thats my bad. This thing is up 112 over the last 12 months. The company has increased in value from 1 billion to nearly 45 billion as of today. In other words, valiant is in beast mode. The stock is blowing up. Two analysts say its a hold and only one lonely bear dares to give it an underperform rating. When herb threw the red flag last week, he was expressing a divergent view, so for tonights sell block well look at the bull case from the analysts and the inform