This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cramer's 'Mad Money' Recap: More Selling to Come

Reddy also talked about Noodles' menu, which includes complex dishes, ones not found at any other fast-casual chain. He said the menu offers lots of choices, noting that "we make things just like [in] your kitchen at home." Noodles has many healthy alternatives under 500 calories.

When asked about competition, Reddy characterized Noodles as a "category of one" given its wide variety of foods all under one roof. No one else is doing what Noodles does, he continued.

Cramer said that while Noodles is pricey, trading at 77 times earnings with a 21% growth rate, he'd be a buyer of the stock if the market continues to send shares lower.

Off the Charts

In the "Off The Charts" segment, Cramer went head to head with colleague Bob Lang over the chart of Netflix (NFLX - Get Report), which now trades at 84 times next year's earnings. This "cult" phenomenon of a stock continues to blow past its 300% rise for the year.

Lang noted that a daily chart of Netflix shows the stock just recently breaking through its ceiling of resistance, creating a new floor at $270 a share. He said this move was made on strong volume, and volume always acts as a polygraph, telling technicians whether a move is lying or not. Additionally, Netflix shows strong buying on every dip.

Lang also pointed out both the MACD momentum indicator and the Williams' oscillator are signaling strong buy signals. In fact, Lang said that looking at a weekly chart, the Williams' oscillator shows Netflix in a strong overbought condition for all of 2013 as investors simply cannot get enough of this stock.

But even more bullish on the weekly chart is this stock's cup-and-handle formation that goes all the way back to 2011. If all of that weren't enough, Netflix just saw its 50-day moving average cross over its 200-day average, making a "golden cross," one of the most bullish technical indicators out there.

Cramer said that while some investors might be squeamish about investing in such a red-hot stock, he's learned the hard way that betting against a cult stock like Netflix is a recipe for disaster.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BMRN $86.90 2.62%
MDVN $58.01 0.36%
NFLX $93.11 3.42%
NDLS $11.37 1.97%
SGEN $36.37 2.51%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs