Where to cut the stem? and any suggestions for better care.

[kjp8128]

ha, ha that thumb looking thing is a water indicator that I picked up at a garden store. It obviously has not helped with this plant.
I should cut the whole stem even though the stem has a spike peeking out of the nub by the blue clip, which is seen in the first photo? The blue clip is at the second nub from the base of the plant. The pictures do not show this clearly.

Thank you for your advice