NEW YORK ( TheStreet) -- "It's time to embrace the craziness," Jim Cramer commanded his "Mad Money" TV show viewers Wednesday. Cramer said he's heard enough whining about the volatility of the markets and insisted it's time to start using that volatility to make some money. Cramer explained that volatility in the markets is the new norm and investors "need to get used to it." In today's market, he said, swings that used to take days, or even weeks, can happen in the blink of an eye. So how can investors take advantage of it? Cramer said he's still a fan of dividend stocks, which offer protection as stocks head lower. He's also still a seasonal fan of the tech stocks, which have rallied in nine of the past 10 fall seasons. But Cramer also introduced a new way to trade, calling it his "4% Rule" for volatile markets. The 4% Rule is simple, he explained. When the markets are up 4%, sell something, when they fall 4%, buy something. He said as long as the stock in question won't get hurt by a collapse in Europe, then that stock would fit this rule. Cramer cited Walt Disney ( DIS) as one stock that fits the 4% Rule. He said the selling in Disney has been ridiculous, as Disney has nothing to do with Greece or Italy nor China. So when Disney shares fall by 4%, "buy 200 shares," said Cramer, and when it rallies back up, "sell them." The old days are long and gone, Cramer concluded. Investors need to embrace the volatility and start profiting from it. "Enough complaining," he said, "go make some money."
Tougher Regulations NeededCramer spoke with Sen. Bernie Sanders (I., Vt.) on the role of speculators in controlling the price of oil and why the Commodity Futures Trading Commission (CFTC) has not imposed new regulations on oil futures despite being required to do so by law. Sanders said simply that the CFTC has chosen to listen to Wall Street instead of regular people on the issue of oil futures and has ignored the law which requires tougher regulations. Sanders, along with Cramer, both called on President Obama to demand the CFTC raise margin requirements and impose limit positions in order to crack down on the rising price of oil. Sanders said the price of oil is clearly being manipulated, yet the president was forced to open the strategic reserve to lower gas prices rather than impose new regulations. He said that there is more oil supply than two years ago, and less demand, yet the price of oil has only dipped slightly after rising precipitously earlier this year. Sanders explained that as much as 80% of all oil futures pricing is controlled by speculators and not by demand. He said the country needs strong rules to combat this speculation. Sanders called on citizens to write the CFTC and ask why they haven't followed the law and introduced stronger rules. He said its clearly in the national interest to do so.
Entry Point for EatonContinuing with his "Paid To Wait" series of dividend stocks that work in a treacherous market, Cramer once again highlighted Eaton ( ETN), a stock which he owns for his charitable trust,