Cramer's 'Mad Money' Recap: While Nike Sleeps

Emerson has already reported numbers that are "great," and although the stock should not be allowed to go lower than where it was after a dividend boost, that's what's happening here, he said.

There is "pure opportunity" to buy this stock, which has a 2.5% dividend yield, Cramer continued, adding that its dividend boost shows that Emerson has confidence in its future.

Another reason to buy Emerson now is that because short-term bond rates are higher, an "influx of investors who would have otherwise bought bonds," is likely to come to the market and buy dividend-boosting stocks like Emerson, he said.

The bottom line: "When you have a potential for a selloff, you need a stock that is going to be secure," like Emerson, Cramer said.

Pirate Capital, Aarrr!

Pirate Capital is making a lot of noise, which might tempt people get into it, but Cramer does not believe this is a good idea.

The hedge fund employs a strategy of "activision," which means it takes a 5% stake in a company it feels is undervalued then it pushes for changes, claiming it's in the interest of the shareholders, he explained.

Cramer believes that as soon as people see Pirate Capital investing in a stock, they should "jump off the ship," as "historically speaking, pirates aren't great investors."

Blindly following hedge funds and mimicking their actions is not something he recommends. Instead, Cramer wants people to think for themselves and make their own investment decisions.

If market players had followed Pirate Capital's lead with Pep Boys (PBY Quote) and James River Coal (JRCC Quote), they would be down, he said.

While some hedge funds may be good, Pirate Capital is not one of them. Cramer is waving a "giant sell flag."