It was just last Friday that the Dow plunged over 350 points, prompting Jim Cramer to decide that this market is pure crazy town. But within the craze of the averages, there was one company that reported such an impressive quarter that it managed to skyrocket despite the gravitational pull.
Darden is the parent company of largely known restaurants such as Olive Garden, Longhorn Steakhouse and Capital Grille. The stock roared up to $64 on Wednesday, after closing at $58 just last Thursday.
Can it keep running?
"For years we have known that among the restaurant companies, Darden is one of the most sensitive to the price of gasoline … you would better believe that they are benefiting from that $2 a gallon price," the "Mad Money" host said.
And while Cramer likes Darden very much, he is not willing to pull the trigger at these prices. He would like it even more on a pullback, especially since it currently trades at 19 times earnings which is a large premium to competitors such as Cheesecake Factory or Cracker Barrel.
"Darden is one of the few companies that seems to be doing everything right at the moment, and I think the stock is headed higher long-term, but ideally you should wait for the next big marketwide pullback," Cramer said.
Finally, redemption season is over! The hedge funds have raised all of the cash they needed to send back to angry investors and tax loss selling has been taken. That is why the averages were able to roar on Wednesday. But Cramer said to be careful, some stocks won't be up for long.
To assist investors in selecting the right stocks for their portfolio in 2016, Cramer exposed the offending stocks that he thinks are up artificially right now.
Cramer warned to steer clear of Chinese stocks. Every month there are investors who speculate that China will launch a furious stimulus plan to turn this around.
"I don't believe any of it. I think the Chinese government is content with the explosion of consumer spending … If this stimulus talk were for real, then China would need to import huge amounts of iron and coal and copper, but that is just not happening," Cramer said.
So, for those who are buying stocks like Caterpillar, Cummins, Freeport McMoRan and Joy Global — beware that there will only be a couple of days in the new year when you will be able to profit off of the hope fumes.
Read More Cramer: Be careful—some stocks are up artificially
Last week, Cramer was blown away by one company that delivered a fantastic quarter, thanks to the low price of crude. In fact, Carnivalis in such a sweet spot right now that he decided to find out what the secret for success has been for the stock.
Carnival is the world's largest cruise line play, and because cruise ships are such gas guzzlers it has been reaping major benefits from the low cost of oil.
"It is not just that one of the company's largest costs has fallen through the floor, Carnival has also been the beneficiary of a magnificent turnaround," the "Mad Money" host said.
It was just 14 months ago when Wall Street pretty much considered this stock to be road kill after a series of high profile disasters. But while most investors were obsessing about these disasters, Carnival was already at work turning itself around, thanks to the leadership of CEO Don Arnold.
This year was a wild ride for the biotech space, as stocks first roared higher and then quickly plunged when the group came under political fire over rising drug prices. But Cramer saw some incredible leaps forward and thinks it is worth noting that the Nasdaq biotech index has still dramatically outperformed the averages.
As investors head into the end of the year, Cramer put a list together of the biotech stocks to load up on for 2016.
Cramer has been a long-time fan of the group of stocks that he refers to as the four horsemen of big pharma. This group represents Biogen,Celgene, Gilead and Regeneron.
"While there are hundreds of smaller companies working on revolutionary things, these four players often have a hand in them and they are likely to command the most attention from the stock market next year," the "Mad Money" host said.
Read More Cramer: Biotechs to load up on for 2016
So with the market rallying on Wednesday, is this the dawn of good feelings for 2016, or are things not as bad as many thought just last week?
Cramer thinks that is what forgiveness mode is all about, and he's seeing forgiveness all over the place. Last week CVS held an analyst meeting to raise the low end of its estimates rang, and boost the dividend 21 percent ; the stock was knocked down to $94 from $97.
Finally, on Wednesday the stock came roaring back on no real news — a clear case of market forgiveness.
"But CVS should never have been down to begin with," Cramer said.
Other rebound stocks that Cramer saw were General Mills and Celgene. He also wouldn't be surprised to see Costco and Accenture as the next to come back.
The market has already started its process of rehabilitation, so Cramer wants investors to be prepared when these two companies come roaring back to life.
In the Lightning Round, Cramer gave his take on a few caller-favorite stocks:
DSW Inc: "DSW reported a really bad quarter, and they have to get it together. I used to think the world of them. They need to fix things."
Westlake Chemical Partners: "No, we want to own Dow Chemical, which my charitable trust owns because it's cheaper and frankly that combination with DuPont is excellent."