Cramer Remix: Here are the winners after Wednesday’s market-wide selloff

Stocks are selling off significantly for the first time in a while, so to stem the panic, Jim Cramer decided to go over his rules for how investors should act on a down day.

Cramer has been saying for a month that until President Donald Trump and Congress come to terms, investors should not count on tax reform or infrastructure stimulus.

Now, with Trump tied up in the Comey-Flynn fiasco, there is even less hope in the market for the benefits of his pro-business agenda.

"People are starting to worry that this political morass could hurt the economy, especially since many stocks, like the banks, are up because investors expect the Federal Reserve will keep raising interest rates," Cramer said.

The potential for long term scandal in the White House could lead to slower economic growth, which leads to the Fed pausing its rate hikes, which leads to bank and transport stocks getting pummeled.

"So, the financials are at the epicenter of this downturn, and Cramer's rule No. 1 is stay away, at all times, from the blast zone," Cramer said.

However, there are some beneficiaries to that hypothetical scenario. It would cause the dollar to weaken, meaning recession-proof companies with large dividends and good fundamentals, like PepsiCo, which ticked up on Wednesday, would get their days in the sun, Cramer said.

"So, rule No. 2 in a selloff: in a selloff that's created specifically by an impression that there's a slowing economy, look for the best-yielding secular growth stocks. Those are magnets for money," Cramer advised.

Cramer also spoke with Doug Bauer, the CEO of homebuilder Tri Pointe Group, for his take on the U.S. housing market.

Bauer said that while he finds Tri Pointe's stock to be undervalued, demand for homes is strong and on the rise.

"There's demand across all segments: entry-level, move-up, to luxury," the CEO told Cramer on Wednesday. "And the demand is real. I mean, it's across not only the 25 to 35 year old, the millennials, but also the active adult and the Gen Xs in between. So it's very broad-based."

Bauer also addressed the pitfalls of the U.S. labor market as it relates to housing, saying that although the shortages are cyclical, the stigma around vocational jobs needs to be erased.

"The key to solving the labor issue long term, though, is really, as an industry ... is getting into the high schools and getting a better educational component [to] the construction business. It's been politically incorrect to talk about going to vocational schools," Bauer said. "And not everybody goes to college, right? We know that. So there's a great opportunity for students today to create a great living and not incur that student debt."

Days like Wednesday, with Trump and former FBI Director James Comey dominating headlines, make Cramer think of investors who sell stocks on worry.

"Now, granted, I always say that bulls make money, bears make money, and hogs get slaughtered. But that doesn't mean you need to throw away a stock entirely because you can't take the pain on days like today or you're worried about the implications of this seemingly endless Trump scandal – as if [the] business of Amazon has anything to do with Flynn or Comey or the rest of the grist from the White House mill," the "Mad Money" host said.

As an example, Cramer turned to the stock of Starbucks, which he owns for his charitable trust and actually got a boost on Wednesday despite the market-wide dip.

The "Mad Money" honed in on this problem because despite Starbucks' strong performance, it seems investors have trouble staying in the stock.

Cramer also sat down with Kevin Sayer, the president and CEO of Dexcom, to hear more about his company's new continuous glucose monitoring system.

Its signature product for the disease, the G5 Mobile CGM, was recently approved to be reimbursed for certain patients under Medicare, but the process of getting it to market has been stalled by implementation processes in the Centers for Medicare and Medicaid Services.

"CMS has been very cooperative in trying to get this through," Sayer said. "In our case, what happened is we got something called a joint directive where the criteria are outlined, but the coverage decisions are not yet in the system."

So, while there are still boxes that need to be checked, the product is on its way to patients, but the process will take time, the CEO said.

In the meantime, Dexcom's partnership with Verily, Alphabet's medical technology arm, is looking ahead to the next generation of glucose tracking devices, Sayer said.

"We've licensed a lot of technology and, actually, a lot of brain power – some incredibly smart people – to miniaturize our products and to make them more efficient, lower cost, and enable them to communicate with numerous things," he said. "If you can put something that's the size of a penny on your body and wear it and measure glucose continuously, as we look at the future and diabetes management and pre-diabetes management and type 2 diabetes, this is a solution, we believe, that'll work for everybody."

Finally, on the first day of palpable weakness in the major averages, Cramer scoured the market for buying opportunities and found one manufacturer that fit the ticket: Stanley Black & Decker.

"Here's a high quality company that's benefiting from some big changes from management, like the acquisition of Newell Brands' tool business and then Sears' Craftsman brand. The numbers have been excellent," the "Mad Money" host said.

Until last week, they had been. The toolmaker's stock had rallied over 17 percent for 2017, practically tripling the S&P 500's performance over the same period.

But the stock is currently down almost $5 from its 52-week highs due to its recent announcement of an offering of 6.5 million equity units, a security that is similar to a common stock but not exactly the same.

In Cramer's lightning round, he sped through his take on some caller favorite stocks, including:

Under Armour: "OK, Under Armour's really interesting because on the Kohl's conference call, they said business is very, very good and they like the Under Armour introduction and it's selling well. But we have Foot Locker to come out and I think that Under Armour's being squeezed still by Nike and by Adidas. I have no catalyst to tell you to buy it. That's the problem."

E-Trade Financial: "It's an inexpensive stock and I really believe that this market is going to allow people to come back in and that they will make money, but not if the Fed doesn't raise the rates twice. This one needs two rate hikes to make the big money, so now we have to wait a little bit to see if we get the second."

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