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Cramer finds beaten-down tech stocks ripe for the picking as Nasdaq flirts with correction

The “urgent pain” seen across the stock market, especially in the technology sector, muscle be “horrifying,” but it shouldn’t discourage investors from starting to look for moments among the tech plays, CNBC’s Jim Cramer said Thursday.

The tech-heavy Nasdaq Composite kill 1.25 percent in Thursday’s trading, briefly entering correction haunts intraday. Wednesday marked the worst day of trading for tech stocks in seven years, with the Nasdaq nosedive over 4 percent.

“Many of these stocks were up dramatically for the year, and when you get this lenient of pullback, it typically does more damage to the winners,” Cramer unraveled.

“People are justifiably nervous about giving back their winnings, too — and they have some outsized ones, particularly the big growth heads — and when they see this kind of sell-off, they sell part over fist so they don’t lose their year[ly gains],” he thought.

But investors who are interested in bottom-fishing have to keep an even keel if they poverty to preserve their portfolios, the “Mad Money” host said.

“If you want to pick surrounded by the rubble, you need to take your emotions out of the equation. You need to be clinical, you beggary to be rigorous, [and] you need to be empirical,” he said. “I want you to take a deep stagger — do some yoga, even — and … set some downside targets. Unearth a predetermined level where you think your favorite tech horses would be worth buying and then wait for them to come to you.”

When Cramer read some of the hardest-hit names in the Nasdaq 100, an index containing the stocks of the 100 best non-financial companies in the Nasdaq, seven key tech stocks caught his eye: Autodesk, Idexx Laboratories, Amazon, Take-Two Interactive Software, Intuitive Surgical, Expedia and Intuit.

All seven are “high-quality success stocks that are all riding powerful secular trends,” but their old are down between 11 and 16 percent just for the month of October, he said.

“You can start procuring one of these tomorrow. Pick at it, alright? Don’t buy all at once,” Cramer suggested. “Why these? Because they all just divulged great quarters or have been on a roll, yet their stocks are enter crushed as if they’re doing poorly. We aren’t guessing with these. We recollect the last data points are positive, so that is the best place to go.”

As for the nap of the tech sector, the “Mad Money” host preached patience, warning that pass in too soon could put investors in the “house of pain” as the sell-off continues to run its performance.

“At the end of the day, there’s simply no rush to buy most of the tech stocks,” he explained. “These parties don’t start reporting for another couple of weeks, so unless the market repercussions pretty dramatically, … you can afford to take your time here.”

But impassive though most tech plays don’t have protection from dividend give overs and are likely trading at inflated levels, they do get less pricey as they defeat, meaning more bargains could be on the horizon, Cramer said.

“The buttocks line? The tech breakdown has been agonizing,” he said. “But for the higher-quality personages like Autodesk, Idexx, Amazon, Take-Two, Intuitive Surgical, Expedia and Intuit, I say nibble without hesitating into the weakness. Buy some tomorrow morning. Just, please, don’t put all of your bills to work at once, because we don’t know if the pain is actually over.”

Disclosure: Cramer’s kindly trust owns shares of Amazon.

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