As oil plunges, sell these stocks tomorrow

Jim Cramer is witnessing a battle between the joy of consumers and the pain of the producers. On a day when the Dow Jones industrial average dropped 268 points, the agonizing screams of the producers won the battle. Squeaky wheel gets the grease, right?

There is still some good news, though it seemed overshadowed Wednesday. Consumers are benefiting at the gas pump to the point where it is unbelievable how cheap gas is. That's like a free tax credit, right in your wallet.

So, what happened?

"Simple: We're just not importing cheaper goods from overseas for the moment, we're also witnessing the stress in their countries at the same time that some of our institutions are bearing the strain of our own domestic oil producers," Cramer said.

These days, that stress has come a little too close to home. For the longest time, the oil producers were overseas in countries far away. Now, the gasoline going into your car could be produced and refined in the U.S. Thus, investors cannot close a blind eye to the stress of low oil prices.

Additionally, there are countries that have borrowed a lot of money and now run a risk of default. Countries like Nigeria,Iran or Iraq may not be able to pay their bills.

So, while there was positive news for the consumer on Wednesday, it was put down by the lurking dark shadows of the oil producers and countries under stress. Cramer warned that if oil does not stabilize soon and goes below $60, there will be more days where the producer's credit pain overwhelms the consumer's spending gains ahead. Buckle up, folks.

Read MoreCramer: Credit pain over consumer gain

A customer refuels his vehicle at a U-gas station in Miami.
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A customer refuels his vehicle at a U-gas station in Miami.

Cramer would love to hand out a list to investors and tell them what stocks will escape the slippery slope of oil prices.

Unfortunately, that's just not possible. Just as oil has been crushed in a matter of a few months, so has the upside in the oil patch. The downside, however, has spread like a virus.

Instead, Cramer has categorized that downside and points out the biggest losers to oil. He broke them into four categories: The early losers, the ancillary plays, junk bonds, and companies you can't see.

Cramer estimates that about 16 percent of junk bonds, about $210 billion worth, could be at risk. To really know which junk bonds are at risk, you would have to go through each one individually. Often it is hard to determine what the bonds own, which makes it difficult. Plus, they may not be worth the effort if rates are going up in 2015.

"I can and will make a sweeping judgment that given the paltry return of these funds anyway, they aren't worth the risk and you should sell them," Cramer said.

Read More Cramer's guide to crude's slipper slope losers

As the market licks its wounds from the hideous decline in oil prices, Jim Cramer would like to remind investors that there is one leg of the industry that has no economic sensitivity whatsoever to the price of oil: Biotechs. They have the potential to grow like crazy, regardless of the world's economy.

In light of the American Society of Hematology (ASH) meeting that came to a close this week, the "Mad Money" host considered this a good time to review the best names in the biotech space, and reveal the winners of the ASH.

First, is Agios Pharmaceuticals, which presented data on its key drug AG-221, for acute myeloid leukemia. Though the stock has already had a 368 percent run year-to-date, Cramer thinks the rough seas of the current market could be a good buying opportunity. Bluebird Bio was the next winner. It develops gene therapies to treat people born with genetic diseases, and it has great things in the pipeline, such as a treatment for sickle cell anemia that could lead to billions of dollars in opportunity.

The big winner from the conference was Celgene. It also had a big jump this week when it released positive data on its two leading drugs, Revlimid and Pomalyst.

"Although, again, why not wait for further pullback here as this correction winds its way through the system, bringing down the good with the bad and giving you a chance, finally, to buy Celgene at a lower price than where it currently trades," he added.

Read More Cramer's biotech bonanza: an oil-hurt free zone

Source: CNBC

One long-time favorite of Cramer's is ISIS Pharmaceuticals. He considers this a revolutionary biotech company with a broad pipeline, and is the gift that keeps on giving for the holidays.

At the ASH conference, ISIS reported better than expected Phase 2 data for an anti-coagulant drug used in the prevention of venous thrombosis. That is, when there is a blood clot within a blood vessel for patients who have knee surgery, it reduces the risk of bleeding out.

Though Cramer just spoke with CEO Dr. Stanley Crooke in October, this stock has shot up more than 56 percent even since then. That's crazy!

Cramer touched base with the CEO again, to discuss this breakthrough drug, and where the stock could be headed.

"No drug has ever achieved this. And we treated these patients, we anti-coagulated them before and during surgery and they had no extra bleeding. You would never even dream of trying that," Crooke said.

Another stock that went for a run among the market pain on Wednesday, was Freshpet. This company has taken a different approach to pet food, by selling all-natural meat based food with minimal processing. In a time where you don't know what is lingering in your pet food, this is a novel idea.

Additionally, the food is merchandised in a Freshpet refrigerator that stores must use to display the product.

Though it has primarily traded sideways since going public in November, Freshpet reported solid earnings on Tuesday. Cramer sat down with CEO Richard Thompson to find out if investors will eat up this stock.

"We are disrupting the category with the innovation we have with fresh, refrigerated, all-natural, no-preservative food. And nobody has been able to do this," Thompson said "There are a lot of barriers around this, because not only do we have refrigeration manufacturing but we have refrigerator distribution, and this great food."

Cramer continued to spot the stocks that need to be sold on the Lightning Round, when he gave his take on a few caller favorites:

Breitburn Energy Partners: "You said long-term, and if you had said anything else I would have said it was a mistake because I don't really want you in that stock. With a 21 percent yield, that is the ultimate red flag."

Ford: "I think Ford is not as good as GM... I understand GM is going down now, but it's got good yield, and I think the dividend is going to be boosted."

Read MoreLightning Round: The ultimate red flag stock