Cramer's 'Mad Money' Recap: Play It Safe

The priorities now, he emphasized, are about downsizing risk and staying defensive. "In this market you have to protect the money you use to invest," he advised, adding it's important to maintain a cash position of at least 10%.

A Piece of Apache

A stock that could work in the current environment is the oil play Apache (APA Quote), Cramer said.

Although Cramer's been calling it the "king of the oils," Bernstein today downgraded it. Some analysts believe Apache's multiple expansion is over some, but Cramer said he believes market demand is still strong enough to sustain Apache's high multiple.

In next two months, he said there will be a lot of buyers for energy stocks again, and Apache should draw attention because of its strong growth. Oil, according to Cramer, is an industry that will be in bull-market mode for many years.

After its significant losses today, people should be thinking about owning Apache, Cramer said. People need to be careful, however. To figure out if this is the level market players should be buying the stock, Cramer welcomed Apache CEO Steve Farris to the show.

"One day does not make a market," said Farris. The company's third quarter, he said, was one of the best quarters Apache has ever seen and he expects the fourth quarter will be very good, as well.