"Everyone is supposed to win with an IPO," Cramer reminded viewers. And while everything about the Facebook IPO may have been legal, it was most certainly horrible for all involved. The deal favored the sellers over the buyers, said Cramer, and there's no denying this was a botched deal from the start. So while Facebook and Morgan Stanley had the perfect opportunity to lure individual invests back to the stock market, they instead choose to be greedy. "Shame on them," Cramer concluded.
Off the Charts
In the "Off The Charts" segment, Cramer went head to head with colleague Tim Collins over the future direction of the markets. Starting with a daily chart of the Standard & Poor's 500, Collins noted that over the past two months the S&P has displayed a rounded top and the dreaded cup-and-handle pattern, a bearish sign seen before declines in both 2007 and again in 2008. Based on last trends, Collins said the averages could decline 11% from current levels. But there is hope, as the S&P has been holding a floor of support, signaling that a decline can be avoided. Using a 10-minute candlestick chart, Collins demonstrated how much of a battleground the S&P has become, with the index oscillating between its floor of support of 1,264 and a ceiling of resistance at 1,280. Today's rally bought the markets some breathing room, Collins concluded, but we're not out of the woods yet. While the stochastics indicate the S&P is currently oversold -- having fallen too far, too fast -- Cramer warned that this alone is not a positive enough indicator to warrant any short-term buying. Cramer's bottom line: There is still hope for the markets if they can hold current levels. If they fall much further, however, all bets are off as it will be a lot harder to claw our way back to breakeven.
Here's what Cramer had to say about callers' stocks during the "Lightning Round": Cree ( CREE): "No, no, I want you out of that stock by tomorrow morning." Fluor ( FLR): "I like Fluor every much but I'm going to urge you to don't buy it right now."