Cramer's 'Mad Money' Recap: Escape From Rumorville

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People shouldn't take the fact that a lot of stocks went down today as a reason to sell all their stocks, Jim Cramer told viewers of his "Mad Money" TV show Wednesday.

When a stock that you want to buy goes down, that's not a bad thing, he said. Stocks are just like any other piece of merchandise.

Today the market threw a sale, and if market players don't use the weakness to buy or pick at some great stocks, they're missing out on making some mad money.

"Buy damaged stocks, not damaged companies," he advised, invoking Rule No. 4 of Cramer's 25 Rules for Investing.

"This selloff today damaged a lot of good stocks" whose underlying companies are good, according to their earnings.

The pullback's not a bad thing, he said, but at the same time it's good to know what will work and what will continue to get hurt. The difference between subjectivity and objectivity is what distinguishes what should work from what will likely not work right now, Cramer said.

On the subjective side, there are the homebuilders, lenders, suppliers, brokers and banks. These are the types of companies that could be sinking to new lows, he said. "Who knows what these stocks are worth?"