Cramer's 'Mad Money' Recap: Making Sense of Earnings Season

A slowdown in the Chinese economy affects the earnings of countless companies, from industrial equipment makers to mining and materials to even retailers such as Coach (COH) and Yum Brands (YUM) .

As for a stock's chart, Cramer said far too often a stock will fall after an earnings release simply because the chartists feel the stock has hit a resistance level, or some other technical indicator has come up short.

But for companies with great earnings momentum, selloffs like these can be the perfect buying opportunity, but only if investors have done their homework to know the selloff was unwarranted, he said.

--Written by Scott Rutt in Washington, D.C.

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