Cramer said he agrees with Garner's analysis, and felt that a large hedge fund received a margin call last week, forcing the huge drop in prices seen. He said once the sharks begin circling a failing fund the selling will only intensify, forcing the fallen comrade to liquidate everything.
As for the future of gold prices, Cramer said a similar short squeeze and subsequent 17% rally took place last summer, and the pattern is likely to repeat itself again this summer. He continued to recommend that gold be a part of every investors' portfolio.
Know Your IPO
In the "Know Your IPO" segment, Cramer took a look at four upcoming IPOs to see which ones should get investors excited.
Cramer started off with Seaworld, which is set to come public under the ticker "SEAS" for between $22 an $24 a share. That puts this operator of 11 theme parks on par with the likes of
, but with a few notable exceptions.
Cramer said that Seaworld is growing revenue faster than its peers, which is good, but it also has a smaller dividend, at 3%, and more debt. Cramer said investors can either buy into the Seaworld IPO or just buy Cedar Fair with its 6% yield.
Next up were two grocery-related IPOs.
will be spinning off its gift card division under the ticker "HAWK" between $20 and $22 a share; Cramer said the division is not getting the credit it deserves.
He was also bullish on Fairway, the New York-based grocery chain with just 11 locations, although he noted the company in the longer term will be facing stiff competition.
Finally, there is HD Supply, a housing-related name Cramer said he also expects to perform well given the strength in the housing market we've seen so far this year.
In the Lightning Round, Cramer was bullish on
MDU Resources Group
iShares MSCI Mexico
Cramer was bearish on
Krispy Kreme Doughnuts