How you'll know when oil has bottomed

Oil producers' pain was louder than consumers' pleasure on Friday, and the averages plunged in response.

Jim Cramer understands the dilemma. Consumers benefit from lower oil prices, but then investors get freaked out and start to wonder if companies will go belly up and what the consequences to this could be.

"Ultimately the big stable oil companies will buy the bankrupt ones and the poorer countries that are overproducing now won't be able to pay their bills—including Russia—so companies will stop drilling. And lower energy prices will stimulate more economic activity, which will boost demand."

That means that this slippery slope of crude will come to an end one day. In the meantime, Cramer has taken his gear out for the battlefield and is sharing what he will have his eyes on next week as the battle continues:

Oil Futures:
He will be watching these like a hawk, as they will tell the direction of the market. If they're down then it is a good time to scoop up some of the companies that have good earnings on weakness. Such as Honeywell, Verifone and restaurant stocks like Darden.

Nike: It's Nike Town USA! Though Cramer has described it as a special company, and a "triumph of innovation and loyalty"—ultimately this stock is a pass in his opinion, unless it's trading at $95 or less.
Red Hat: Cramer likes the setup and thinks that it could report amazing numbers and the stock could be headed higher

Ultimately, with all of these opportunities on tap and the drama of oil continuing into next week, this could be an excellent opportunity to jump on, provided that oil will create an asset-class-wide downturn. Though that creates nothing but headaches, at least there is one booyah for the market left for investors.

Read MoreCramer: These could be hidden market opportunities

With the rapid decline in oil prices recently, Cramer thinks that nothing seems more important to the near-term direction of the stock market than crude.

Black gold broke down again on Friday, stumbling all the way down to $57.81, its lowest close in more than five years. In order to get a grasp on what is happening, we need to get an idea on where oil is headed.

Last week, the "Mad Money" host consulted Carolyn Boroden, a technician who runs the website and is a colleague of Cramer's at She used a Fibonacci analysis to predict where the floor of resistance will be for oil.

Last week, Boroden was bearish on oil. She saw that oil had a floor of support around $64, and then if it didn't pass a few tests then it would be in for a big drop. Sure enough, on Monday the price of oil broke down from $64 and has been on a slippery slope ever since. Looking at the weekly chart, she sees that the next floor of support is between $50.46 and $55.67, where she thinks oil could bounce.

Before investors get really excited, Cramer wants to clarify that any bounce is bound to be short-lived. Specifically, the timing cycles point out that oil's short-term bottom will occur between the 11th and 12th, and 16th and 18th. One of those cycles was cleared when we hit a new bottom on Friday the 12th, so the next one is nearby.

Boroden predicts that this temporary bounce will have a ceiling of resistance at $69.70.

Her chart work suggests that oil could be due for a bounce next week, but it will be short-lived. She predicted the bottom, stating that the next stop on the downtown train of oil will be $50-$52.

"I think it's very likely that could be our next stop, although it might not be the last station on the way down," Cramer said.

Read More Cramer: Oil bottom could be closer than you think

In fact, the slow and painful death of oil is just plain torture, and Cramer thinks we have a real problem on our hands.

"Only the Saudis can let up. Everyone else is going to go full out to pay the bills. It's a gigantic prisoner's dilemma and the marginal producers will eventually go belly-up," the "Mad Money" host said.

The real problem here is the dramatic shift in oil's direction. After soaring above $100 during the summer, it has gone down almost 50 percent for the year, and still continues to fall little by little.

So how does this torturous decline in oil end?

Let the problem cure itself. Let Venezuela, Libya, Iran, Iraq, Nigeria and Russia stop drilling out of fear of not being paid. Then they will run out of oil, which will take down the supply by 2016. That will send crude bouncing back in 2015.

But it certainly won't happen in 2014. Not now, and not at these prices.

Read MoreCramer's guide to ending oil's hemorrhage

Employees pass beneath pipes leading to oil storage tanks at the central processing plant for oil and gas at the Salym Petroleum Development oil fields near the Bazhenov shale formation in Salym, Russia.
Andrey Rudakov | Bloomberg | Getty Images
Employees pass beneath pipes leading to oil storage tanks at the central processing plant for oil and gas at the Salym Petroleum Development oil fields near the Bazhenov shale formation in Salym, Russia.

Cramer likes to keep his eyes and ears open for the next big thing. Sometimes that means going off the tape to talk to an innovative and privately held company that are stand out players.

One of those companies is It is a home improvement network that matches consumers to the right contractors based on the size of the project, budget and recommendations from friends and neighbors.

The upside continues, as Lowe's decided to incorporate's software into its stores. It also just rolled out a mobile app, satisfying customers with just a few clicks. To learn more about where this company could be headed, Cramer spoke with's co-founder and CEO, Matt Ehrlichman.

"We have aggregated just massive amounts of data around the home in order to help homeowners actually see who their neighbors have used," the CEO said, "For the first time they can literally know who works down the street and who their neighbors love. Porch is on a roll because this is a problem homeowners have had forever, and we can solve that uniquely."

As for a few housekeeping items, the "Mad Money" host took the time to follow up on a few stocks that he had to do his homework on. First was Intrexon. Cramer thinks this stock is worth buying on weakness.

Next up was Rockwell Medical, which Cramer was willing to endorse for those investors looking for a little speculation. Though it is not for the faint of heart, he warned.

Finally, there was Liberty Broadband. While there is a decent opportunity for arbitrage on this stock, the "Mad Money" host does not encourage arbitrage.

In the Lightning Round, Cramer continued to discover the ways that oil has permeated the market when he gave his take on a few caller favorite stocks:

Agrium: "We don't want to touch anything in the fertilizer business. We do know that Agco has a meeting next week and we'll be able to find out a little bit more. But no, no, no."

Truecar: "We like these software companies that do this stuff with cars. I think it's good."

Read MoreLightning Round: No, no, no on this one