Mad Money

Cramer game plan: Prep for sharp sell off in week ahead

Cramer: Keep one eye on earnings & the other on the big picture

As much as Jim Cramer wishes earnings season were over already, he knows this is no time to sit back and put his feet up. Investors are still in the thick of it, which is why he has shared his rigorous game plan of stocks he will be watching next week.

"Yes, it is another minefield of earnings reports, made even more difficult by the sheer number of new companies that have come public in the last few years," the "Mad Money" host said.

With China and earnings on the mind, here are the stocks that Cramer will have on his radar next week:

Monday: Clorox, Denny's, BioMarin
Clorox: This is the quintessential consumer packaged goods play. Cramer expects solid numbers, to reiterate his opinion that this is a core portfolio holding.

Denny's: Last quarter, Denny's reported a dramatic upside surprise thanks to the price of oil dropping. Cramer wouldn't be surprised to see some positive moves from Denny's.

BioMarin: This isn't an earnings story for Cramer; it's a new product pipeline story. The quarterly report will show how its recently approved products are doing. And while Cramer doesn't expect a slip-up, he warned investors to be aware that the stock is up more than 50 percent for the year.

Tuesday: Chinese PMI, CVS Health, Regeneron, Disney, Pioneer Natural Resources
Cramer wants investors to be prepared for disappointment, as China PMI is an important gauge for how the Chinese economy is doing. Just be aware that China can lurk like a hidden dragon and breathe fire on U.S. stocks with an intense level of force.

"I need you to be ready for a sharp Chinese market selloff that can then impact our market," he said. (Tweet This)

CVS Health: If the PMI is poor, then there could be a buying opportunity for US-based CVS. Cramer expects yet another excellent quarter, which could be overshadowed by a China selloff and create an opportunity.

Regeneron: The tie-up between Regeneron and Sanofi, which owns 22.6 percent of Regeneron. The two are collaborating on an anti-cholesterol drug, and the news has overshadowed their new partnership to develop cancer drugs.

Cramer likes Regeneron for a long-term play, but if the market fails to recognize its new developments on Tuesday this could be an opportunity to buy the stock. Cramer wants investors to take advantage of this opportunity that could go unnoticed because it is a chance to buy Sanofi, too.

Wednesday: Ralph Lauren, Jack in the Box, Tesla, FitBit
Ralph Lauren: This company has been disappointing lately, and Cramer wonders if it will break out of its funk finally.

Tesla: This is a cult stock that has defied reality for Cramer for years, and he thinks it will continue to do so. If you love the car, then Cramer says to feel free to buy the stock.

FitBit: Cramer doesn't think the marketplace fully understands the power of the ecosystem that has been created by FitBit. Maybe they will get it when it reports.

Thursday: Allergan, Molson Coors
Allergan: Cramer admits the expectations for this stock have gotten very high. Cramer has the stock in his charitable trust, and is someone concerned about the run up.

Read more from Mad Money with Jim Cramer
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Friday: Labor Department's non-farm payroll report, WhiteWave Foods
"I think it is safe to say that there will be a massive second guessing of the Fed's decision to not signal a rate hike earlier this week if that payroll number is strong," Cramer said.

A strong number and a quiet Chinese stock market could translate to more calls for the Fed to tighten in September, so expect a selloff if there is a strong number.

So while there is still an abundant amount of earnings to get through next week, the Fed chatter and potential Chinese breakdown will take center stage again. So keep an eye on earnings and remember the big picture to buy stocks at cheap prices when the opportunity arises.

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