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Jim Cramer's 'Mad Money' Recap: A Week of Market Madness

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NEW YORK (TheStreet) -- There are four weeks a year when the markets become a mad house, Jim Cramer said Tuesday on Mad Money. This week, the height of earnings season, is one of those weeks.

Cramer once again urged investors to steer clear of stocks during earnings week because they're up against terrible odds and the market's reactions to news can be totally out of sync with reality.

Case in point: the battleground that is Herbalife (HLF). Cramer said the tennis match between activist investor Bill Ackman and company management has become totally unpredictable, with shares soaring 25% on "news" Ackman had thought would sink the company. Cramer said investors need to avoid battlegrounds like Herbalife at all costs.

Then there's Apple (AAPL), a stock Cramer owns for his charitable trust, Action Alerts PLUS. Many investors are already "disappointed" with iPhone sales, but does that truly reflect the company's prospects with new, possible bigger, phones on the horizon, plus a new deal with IBM (IBM) and potential wearable devices?

And what do we make of General Electric (GE), another Action Alerts PLUS stock? Company management proclaimed everything was great but digging into the details saw revenue misses in several key areas.

So while the markets are running around guessing, second-guessing and reformulating their thoughts on earnings news, Cramer said home gamers are better off sitting on the sidelines and waiting for calmer seas next week.

Good Taste vs. Good for You

A battle is raging between what tastes good versus what's good for you. Nowhere can the rebellion be more clearly seen than between Chipotle Mexican Grill (CMG) and its former parent, McDonald's (MCD).

Cramer said the stark contrast in these two companies' earnings couldn't be more clear, with McDonald's suffering from not enough customers while Chipotle struggles to get its too many customers through its lines faster.

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