All shapes and sizes, dow plunging 331 points, s p plummeting 1. 3 . Some blame the strong dollars. Others said oil got too low too quickly. In my opinion, way off the market. After a 12 gain many investors are trying to lock in some profits, and i have to ask you, after a 12 gain in the s p, who can blame them . A fitting moment to question the silly preconsumptions that served as alibis all day for the selling we saw as we try to fathom this decline and try and figure out how to make money in the market in the coming next few weeks, if not months. The also perceptions cost you plenty in 2014. When i look at the Lessons Learned from last years double digit game intense fire and ill logical thinking. Let me put it this way, if you listen to worries we heard articulated today and acted on them, you lost big money in 2014. I dont think it will be any different this year. I got ten take aways from 2014 stellar performance, but i got to share with you today on this hideous day i saw many people fleeing from the market many of these points are brutal reminders not to fall pray to the fears that you may have on a session where the dow loses more than 300 points. Last year should have taught you it doesnt pay to be contrary and a benign inflation and descent growth. Say it again. Because this combination played out positively for me since i made my first trade in 1978 and got more pronounced since more data dependent as ben bernanke made from his mistakes the fed cared more about the data e vis rated tons of too smart for their own good Money Managers that did macro analysis and thought the fed would tighten despite the lack of inflation. I suspect well see the same dynamic this year before i get into specifics, let me say any attempt to invest any belief that what really matters was your personal view of politics or Monetary Policy that cost you big time last year. I want you to Pay Attention to the facts in 2015, not opinions. The facts didnt lose to a stray in 2014 and wont do it no matter how often. I grossed yet when dahlllas beat detroit. Lets keep that out of picking stocks, please. The first lesson of 2014, sweeping judgments lead to incorrect conclusions. How many times did it lead you astray for the morning or the next day or next day . They were based on the carry over book from europe. They often steered you more wrong than right over the near term maybe not on a given day like today, same with the oil actions. We spend the year believing when oil goes down, its negative for stocks like today. Turned out to be positive but the oil stocks we spend a great deal of time worrying about the strong dollar and dismissed the impact on earnings and took the stocks in question anyway and the idea the fed had to raise rates every time we got robust Economic Data if you act on that it cost a fortune. Use a positive not a negative because it lessons the competition through stocks, dividends and yet, markets sold off again today anyway. Lesson number two, dont sell too soon. Something i saw happen for the whole session, the whole session today. The strongest stocks at the beginning of 2014 stayed great. Retailers rallied as employment grew robust. The trick was to hold on for the ride as hard as a that is on brutal days like today. It took discipline to stay with the stocks at 50 underlying no inflation, descent Growth Scenario but if you stay discipline, you made a killing and if you didnt if you acted on fears, you probably sold today and good luck getting back in. Lesson through, if you bet on any kind of turn around any at all from a country like china or europe or any stock, that bet typically turned out to be a mistake. This is why you dont realize you were punished far more for trying to be a hero than going with the flow. 2014, bottom fishers for suckers. Most likely will be again in 015. Lesson, dont buy the stocks of commodity producers. The best copper or oil or gas got slaughtered. They got slaughtered a little less. You cant buckle commodity thats in decline when china is not growing as fast. We saw this play out in the oil patch because it doesnt matter how well run a Commodity Company is. It will get clubbed when crude or iron or copper come down. More later in the show. Lesson five, in a low interest environment, dividends cannot protect you if there is any fear the dividend is unsafe. You werent protected by outside yields of oil companies, instead wrecked. Mass limited partnerships red flags, nothing more. Safe dividends like Kimberly Clark or clorox had terrific returns. Dont sell them just because they seem expensive. Starbucks with its roast and disney with frozen and cvs with the decision to go away with cigarettes and costco and home depot with its. Com reinvention. As they were thrown to the wolves today and were at various times last year too. I call it opportunity. Dont think of bioteches as onetrick ponies. They develop drugs far field from the franchises and that the the apockk a pock epoch lips. It moved up. They paid for the hepatitis c grudge. Later youll hear from isis isispharma, one that got j and js backing worth 835 million. Isis rallied more than any stock finished with a 10 gain. Lesson eight, all dogs can learn new tricks and in 2014 the best reformers were the utilities, the transports chiefly the airlines. Utilities benefitted from lower rates and power consumption because things are getting better. Why else would they pull away that offered big dividends but fighting price wars . The airlines changed, merged stop the price wars. These were all new tricks from decrepit dogs they would repeat from an initial stand off. Activists didnt get to be the new king of pharma for nothing. The market loved it. The merger is notably now kbree created a company and the new cypress merger brought welcome consolidation and higher prices yet, the impact was under estimated by analysts, which is allowed the stocks to keep rallying. Finally, lesson number ten buybacks, pay quick attention to this because the market got killed today. They do matter if they shrink the float and be along by them with them. Most buybacks didnt mean much because they barely dented the supply of stock but home depot, auto zone or travelers, another big component had Lasting Impact and you had to buy them into weakness like today, no matter what. Here is the bottom line. If there are plenty of other lessons from 2014 but these are important and you need to stick with conventional wisdom other than being a hero and swinging for the fences. In 2014 you didnt need to be a contrir yin to make money. The trade and true paid off. Even after todays selling tsunami. I bet 2015 will be no different. How about josie in california. Caller hi, mr. Cramer. I have a question. I admire you very much. My question is do i drop win casino or stick with it . I am not a bull on china. I am not a bull in a china shop. I think when as great a company it is and its down a great deal will not do much in the next few months because the numbers from mcall were horrendous. Tom . Caller hi jim, big booyah to you. Sweet. Caller thank you. Im calling about a recent ipo, a Company Bringing eyesight to the blind, medical devices eyes. The Company Founder is billionaire mann with a sound balance sheet, no doubt. Right now, they are they have successfully done patient implants. People regaining sight and upgrades in software but 2016 promises to improve the eye slight greatly. Your thoughts please . This is a very unseasoned Small Cap Stock in a market thats turned virally negative. This is when you buy, sir, not eyes but bristol myers, you want a little safety too. What better time to reflect what we learned in 2014 than the first hideous trading day of 2015 . The tride and true paid off. Knowing what separated last years winners from losers could be key to a profitable 2015 that nobody is thinking about. Im talk about the stocks that dominated the dow and tech titan cisco surged 23 last year. Can it do it again . I got the ceo in vegas. Ill show how technology will continue to change your life this year. Plus, Lower Oil Prices may have you licking your chops about these declines but dont miss my take before you dive back into black gold. Stick with cramer. So, how do you feel about cash back . I would not say im into it. But lets see where this goes. [ buzzer ] do you like to travel . Im all about free travel, babe. Thats what i do. [ buzzer ] balance transfers you up for that . Well unh. Too soon . [ female announcer ] fortunately, theres an easier way, with creditcards. Com. Compare hundreds of cards from every major bank and find the one thats right for you. Creditcards. Com. Its simple. Search, compare, and apply. [ ice rattles ] in the wake of a nasty day for the averages the worst in months, i think we should focus on the upside not the downside. Particularly as most of this decline from the velocity of the drop in oil and i am unrelentingly bullish about the direction of oil, even as the speed of the oil sell off is happening too quickly for most to fathom. Still, after the dropping we need to remember what can lead under the circumstances, not focus on what can crush because thats why i think its worth looking back at the stock markets excellence performance to see what the leaders in 2014 might have in store this year. I spent the vacation analyzing all 30 stocks, which is up about 10 . A bottom analysis where i look at every component in the dow and put together a forecast for the new year. Put it all together and i think the index can amount another 10 rally for 2015. You can read about each individual component in real money. Com but tonight i want to focus on the dows best performers because on a down day like this its best to figure which winners are worth circling back to. Lets tick them down. The top five from 2014 and where they are headed in 2014 up intel, king a miraculous 39 gain and last year intel benefitted from a definitive and entirely unexpected turn around in personal computers. One with a cut in capital and the rationization of the ill faded communication chip business. While the ceo didnt have anything to do with that rebound in personal computers, he has truly shaken up the culture of undisciplined spending and a lousy division that was a huge waste of resources. It doesnt hurt its hasmasz sievely under estimated and so many analysts written off intel coming into last year even though it had a big yield. Personal computers will only do better in 2015 and intel can beat estimates. At one point intel had a legitimate competitor but that challenger is much more on the ropes as we enter 2015. Its a nonentity as a competitor. Lets do this math and say intel earns 250 this year. The stock will finally trade at a market something its well below now which means intel should trade up. Second best performer in the dow unsung united health. Up 34 and i think its terrific run is far from over. If we believe job growth will continue with the strong pace we saw at the end of last year and we get more Aggressive Health insurance enrollment courtesy of the Affordable Care act, unh could easily earn 6 for 2015 possibly more. Dont forget Insurance Companies practically wrote the text of the Affordable Care act, something we didnt understand until last year. How couldnt you not give unh a higher multiple . Stock trades at roughly 16 times earnings. You must do this math. Thats how i come up with a 120 price tag for united health. 20 increase over the current stock price and thats based on conservative earnings. Another fabulous year. Next up we have one of my personal favorites, thats home depot. At first glance it seems fully valued at that move. Given its trading more than 22 times earnings estimates but Something Big going on. The company buys back stock. I bet they were in there today shrinking the share account in the last seven years and retired 1 3rd of the outstanding shares that gives a big boost to the earnings. The least earnings per share. Meanwhile home depot is spending a great deal on the internet offering which is producing a fantastic return but mainly this company spews crash. Nevertheless, what really matters is the excellent state of you, of the consumer and a world where i expect the price at the pump to decline and winter heating bills will be cut in half. That represents an increase in purchasing power. On top of that i dont believe the Home Building in this country can stay at these levels for long. We build only 1 million new homes last year, half of what we built in 2005 even though we have now more than 22 million additional citizens. I think this lower number is unsustainable given the household formation numbers and what could be recordlow Mortgage Rates given the shocking declines weve seen of late and the level of the Home Building improves, that will be huge for home depot. Thats why i believe wall streets earnings could turn out to be rad dickk radically low and deserves a higher price earnings because of domestic pure play nature heaven knows we need more of those. Lets give it 24 types earnings. That adds up to 144 price target. Thats a monster 42 gain in short, home depot should once again be one of the best performers. Fourth microsoft up 24 . Hard to believe it will stay that way for long. Not only does it benefit from the computer cycle from intel but has a new ceo and cfo amy hood that called for bold moves. Could xbox get spun out . Its out selling the playstation. Could it be a year of dividend boost or at least a higher multiple to price earnings because of the companys more cloud based orientation, maybe all three. I think microsoft can earn 3 this year. Stock has a 2. 6 yield, nice versus 2 return. If you give it an s p market multiple, that would make this a 54 stock, 16. 6 versus the current price. Its hard to believe cisco was the fifth best performer in the dow. It was up 23 last year. It seems like the stock has done very little. It left with a terrific amount of hope. That says cisco needs a worldwide economic recovery even as it benefits from an awesome product cycle and lots of strong prospects, more on that later when we speak to the ceo. I think they could earn 2. 30, more important the idea this high Quality Company deserves to trade at less than 13 times earnings, thats ridiculous. How about 15 times earnings . That makes more sense to me than the huge disparity between this company and tech and the members the s p 500. Put it together and that gives you a 33 price target. Here is the bottom line. On a vicious day like today, we need to remember that there are lots of High Quality Companies out there with stocks that perform terrifically last year and they deserve to go higher again this year. Stocks like the top five winners of the dow intel, united health, home depot, microsoft and cisco i think can help lead the dow to a 10 gain for 2015 which is why you should buy, not sell these leaders after this hideous opening. Kathleen in new york. Caller thank you, jim. Given the downpour of the chinese economy is there a term implied if a price target is given on a stock like alibaba. Its a decline in huge nonresidential construction. Its not necessarily a decline in Consumer Spending. I think Consumer Spending will go up nicely and remember just the rate of decline. Its just accelerating but not for the consumer. Thats why i think alibaba is okay here not my favorite but i like it. I like yahoo. Dont let the sea of red district you. I think they could continue to win and lead the dow to a 10 gain in 2015. Much more mad ahead including my exclusive with the ceo. What is on deck for the fifth best performing stock in the dow . Ill hear from the horses mouth on all things tech. Then oil fell below 50 for the First Time Since 2009. Scary, is it finally time to buy or is this a big value . Dont miss my take. Isis shot up 10 today. Big deal. I got the ceo. Stay with cramer. Hi. Pete and jon najarian here in new york city outside of the nasdaq, where we bring you live daily market updates. And today, we have a very special free gift for you. So many viewers email us wanting to know our secrets on how we trade options. So we put our secrets into a new book. And if youre one of the first 250 people to call in right now and just cover shipping and handling well send you a copy for free. Look at the rate of return weve made on some of our recent options trades versus what we would have made had we just bought the stock. Theres no comparison. To make the best returns in todays market, you have to learn how to trade options. And our book will show you how to do it for free. Jon has been Trading Options for more than 30 years. Pete is one of the top 100 traders in the country. And our book will teach you how to trade options for free. So call now. [ male announcer ] call the number on your screen now for your free copy of jon and petes new book. Thats. see the number on your screen call now. After today, these oil stocks maybe look a little temping to you. You can see the lust for them near the end of the day as invest tors search for stocks that seem so down and out in a moment when so many sectors had monster moves. With oil falling through 50, we hear many analysts talking about how oil could trough here and it might actually at this point be over done. There is just one problem, the earnings per share numbers. They have to come down. In fact they have to come down huge and they havent yet, at least not much to speak of. More ratings, there are way too many buy recommendations. Thats a deadly combination because it means analysts are your enemy on pretty much any advance because they cant justify their positive bias with estimates that need to be cut and cut sharply. Now weve seen real stress here in the offshore drillers where investors expect day rates to plummet and dividends to be eliminated in the highly leveraged mass limited partnerships that had to cut distributions and the collapse with stocks like sanchez, and others that are perceived as having paid too much for their properties that are over stretched, but i want to tallcall your attention to how hyped the oil patch got by revisiting a painful piece of research from Morgan Stanley recommending a company. Its a fracking sand play when brent crude traded 102 a barrel on a