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) -- A lot has gone wrong over the past 36 hours, Jim Cramer admitted to

"Mad Money"

viewers Tuesday after another down day on Wall Street.

Unfortunately, the market doesn't yet reflect all of that bad news, so be prepared for more selling to come.

There was nothing to like about today's market, which is why the selling is likely not over. Cramer said investors don't know what's going to happen regarding Syria, so they assume the worst and sell on that worry. A conflict in Syria means higher oil prices for an already strapped U.S. consumer.

Then there are fears over the U.S. debt ceiling debate. Over the past few years, the market has learned that when the debates heat up in Washington, it's time to start selling on Wall Street. Washington causes nothing but damage to the markets, noted Cramer, but that should be nothing new to savvy investors.

Finally, the markets are fretting over the talk of a new

Federal Reserve

chairman, which only adds more uncertainty to an already uncertain market. All of these factors mean the economy will be slowing, which means stocks need to head lower, he said.

Given all that has gone wrong and those things that likely will go wrong, Cramer expects another 3% to 4% selloff in the markets, after which investors should consider buying defensive stocks like domestic oils and

Bristol-Myers Squibb

(BMY) - Get Bristol-Myers Squibb Company Report

. He said investors need to avoid the bank stocks.

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TheStreet Recommends

Executive Decision: Kevin Reddy

In the "Executive Decision" segment, Cramer spoke with Kevin Reddy, chairman and CEO of

Noodles & Company

(NDLS) - Get Noodles & Company Report

, the restaurant initial public offering that's up over 100% since it debuted earlier this year. During the company's first public conference call, Noodles posted an earnings beat of 6 cents a share on an 18% rise in revenue and a 4.4% pop in same-store sales.

Reddy said that while Noodles has only 350 stores, the company can easily open 2,500 in the U.S. alone. He said his company has a disciplined growth strategy, however, and will expand slowly and carefully. One positive note for Noodles has been the growth in its mature markets.

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


(NFLX) - Get Netflix Inc. 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.

Lightning Round

In the Lightning Round, Cramer was bullish on

Checkpoint Systems




(FTNT) - Get Fortinet Inc. Report


Urban Outfitters

(URBN) - Get Urban Outfitters Inc. Report


Cramer was bearish on

Activision Blizzard

(ATVI) - Get Activision Blizzard Inc Report


America Movil

(AMX) - Get America Movil S.A.B. de C.V.n Depository Receipt Series L Report



(INTC) - Get Intel Corporation Report


Mylan Laboratories

(MYL) - Get Viatris, Inc. Report


SandRidge Energy

(SD) - Get SandRidge Energy Inc. Report



(IMGN) - Get ImmunoGen Inc. Report


New Residential Investment

(NRZ) - Get New Residential Investment Corp. Report


Who's Next to Be Bought?



(AMGN) - Get Amgen Inc. Report


Onyx Pharmaceuticals


, Cramer asked the logical question: "Who's next?" After screening the entire biotech sector, he uncovered three solid prospects.

Cramer said



is the first stock that could be taken over; this company's prostate cancer treatment is showing positive results, with patients surviving an average of 18.4 months longer. Medivation also has a bountiful pipeline of products, making it ripe for the picking.

Next on the list is

Seattle Genetics

(SGEN) - Get Seagen Inc. Report

, a stock that's already up 68% since Cramer last spoke with the company's CEO in December. Seattle Genetics' targeted cancer treatment, Adcentris, is also proving to be a winner and the company is already working to expand its use to new indications.

Finally, Cramer noted orphan drug maker


(BMRN) - Get BioMarin Pharmaceutical Inc. Report

as a potential acquisition target. He said this company is easily worth $11 to $12 billion to a potential acquirer.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer responded to recent reports the hydraulic fracturing technology used to produce natural gas is causing earthquakes and tremors in our oil shale regions.

Cramer said these reports need to be monitored and studied closely, but the fact of the matter is all energy sources have side effects. You simply cannot get energy without damage being caused somewhere. Tremors may not be a huge win, he said, but it's certainly less of a loss than importing oil from abroad.

Cramer once again called energy independence a national imperative, one that creates jobs and, in the case of natural gas, is far cleaner than using oil and coal alternatives or driving up food prices with ethanol. So while natural gas may not be perfect, it's certainly the best alternative we have at the moment until renewable fuels become more practical.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC


To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

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

To email Scott about this article, click here:

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At the time of publication, Cramer's Action Alerts PLUS had no position in stocks mentioned.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of or its affiliates, or CNBC, NBC Universal or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.