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The markets are once again focused on China, Cramer explained. The sellers overwhelmed that country's new rules and circuit breakers designed to curb such panics. Fortunately, we've seen this situation before, in 2015, so we know that a 5% to 7% selloff here at home is probably coming next and can prepare accordingly.
Cramer said anything levered to China is clearly off limits. That means the industrials along with the financials, which won't likely see higher interest rates amid global woes, are off the table. Tech is a possibly, Cramer said, but only after the fourth day of the selloff.
What can investors buy in the interim? Cramer said retail, health care and consumer packaged goods still work because they're largely domestic. He gave Lululemon Athletica (LULU) - Get Report , Bristol-Myers Squibb (BMY) - Get Report , Procter & Gamble (PG) - Get Report and Darden Restaurants (DRI) - Get Report as some examples.
Cramer's Top 5
Today's brutal selloff may have investors heading for the exits, but Cramer said he's still a fan of the top five performers in the Dow Jones Industrial Average from 2015.
Some may call the Dow irrelevant, but Cramer said there's nothing irrelevant about Nike (NKE) - Get Report , which soared 30% last year. Nike continues to dominate, and let's not forget that the Olympics are coming soon.
Cramer is also a fan of McDonald's (MCD) - Get Report and Home Depot (HD) - Get Report , both of which rallied 26% in 2015. McDonald's has new management that's finally in touch with its customers, Cramer noted, while Home Depot continues to be a category that cannot co-opted by Amazon (AMZN) - Get Report .
Rounding out the Dow's top five are General Electric (GE) - Get Report , the conglomerate that's regained its earnings momentum, and Microsoft (MSFT) - Get Report , the software giant that's slowly but steadily becoming cool again.
Cramer said investors can't go wrong investing in any of these names in 2016.
Continuing with his look at the Dow Jones Industrial Average, Cramer looked at the Dogs of the Dow to see if there are any winners to be had.
Finally, there's United Technologies , a stock Cramer said is worth owning, down 17%. This company has been under-managed for years but has great assets and now trades for just 14 times earnings, half that of General Electric.
Executive Decision: Charlie Morrison
For his first "Executive Decision" segment of the year, Cramer sat down with Charlie Morrison, president and CEO of Wingstop (WING) - Get Report , the restaurant chain with shares that are off 26% since its June initial public offering.
Morrison said Wingstop continues to focus on its specialty, wings. He said the model is simple and efficient, with an average store size of just 1,700 square feet and 75% of the business coming from takeout. This leads to great returns for franchisees, which, in turn, help grow the business.
Morrison said online sales are up 100% year over year and there's still plenty of room to drive more of the business online.
Cramer applauded Wingstop for its efforts in a difficult year. He said the stock is thinly traded but the concept is clearly a good one.
Cramer was bearish on American Water Works (AWK) - Get Report , New Residential Investment (NRZ) - Get Report , Chicago Bridge & Iron (CBI) , SunEdison (SUNE) , Kinder Morgan (KMI) - Get Report and Twitter (TWTR) - Get Report .
No Huddle Offense
In his "No Huddle Offense" segment, Cramer updated viewers on what he thinks of "FANG," his acronym for Facebook (FB) - Get Report , Amazon.com (AMZN) - Get Report , Netflix (NFLX) - Get Report and Alphabet (GOOGL) - Get Report , formerly Google, going into the new year.
Cramer said investors should expect profit taking over the next few days, which is only natural given the big runs these stocks have had. Of the bunch, he said Alphabet is the cheapest and would be the one he'd buy on any continued weakness.
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At the time of publication, Cramer's Action Alerts PLUS had a position in FB, GOOGL and TWTR.