Don't abandon common sense, Cramer said Thursday.
Stocks don't all deserve to go down at once, for example. Violent stock movements, like those we've seen recently, are often more about internal problems of the sellers rather than having to do with the fundamentals of companies, he said.
Likewise, it's bullish when a commodity comes down because of supply. In turn, the economy will benefit from lower crude prices because it translates into lower gasoline prices, giving the consumer more money to spend elsewhere.
All of these things were forgotten on Thursday, though. It also seems that the hedge funds, who bought on margin, were forced to cover their positions. They were forced to sell their position and selling begets more selling, Cramer said. So the proximate cause of the sell-off is a sudden decline in oil, which is a good thing.
Cramer recommends looking at companies that have recently complained that so long as fuel costs remain high, they might not make their numbers. With oil prices falling, that shouldn’t be a problem anymore. Restaurants, like Darden , have said they need oil to come down. Transports, like FedEx , have said the same. Should gas prices fall, the consumer will have money, which Cramer thinks will benefit retailers.
With stocks getting hit across the board, Cramer would look at companies that have recently reported good news, including Phillips-Van Heusen and Bed Bath & Beyond .
What's the bottom line?
"Stop looking at your screen and deciding that the sellers are smarter than you," Cramer said. "Stop fretting when you have done the homework and have the shopping lists precisely for this moment. And, of course, start your buying!"
Call Cramer: 1-800-743-CNBC
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website? email@example.com