First, after opening at $42 a share and popping to $45 within the first 15 minutes of trading, Facebook failed to hold that level, its first bearish signal.

Second, shares closed near its lows on its first day, its second strike. Finally, shares continued to sink on weak volume during day two, the nail in the coffin for the bulls.

Using Facebook's full daily chart since its IPO, however, Redler noted a "cup and handle" pattern, which is a bullish signal noting excess demand may finally be exhausted. Redler felt that shares are now a buy between $30.50 and $32.50 and he expects strength to continue to an additional seven to eight points of upside.

Cramer, however, remains bearish on Facebook, saying it's too dangerous to own before the company reports earnings on July 26. Too many questions remain about the Facebook's business, he said, and only the earnings call can answer them.

And the Winner Is...

The results are in and "Mad Money" viewers have voted Arena Pharmaceuticals ( ARNA) as their pick for the biggest winner in the second half of 2012. Cramer said Arena received 67.1% of the vote in his "Home Run Derby" Monday night, but he's still skeptical.

Cramer said that when it comes to biotech companies, he looks for small, undiscovered names -- the exact opposite of Arena, which took center stage when its weight loss drug Belviq received U.S. Food and Drug Administration approval earlier this year. While the markets are expecting Belviq to be a $1 billion to 3 billion opportunity for the company, it may not be able to live up to the hype.

What could go wrong? Well, for starters Belviq its not the panacea for obesity. The drug only produces an average 5% to 6% weigh loss in patients after 12 weeks. If the drug cannot be taken in higher dosages without serious side effects and if it fails to produce results in 12 weeks, patients must discontinue its use. There's also the issue of whether HMOs will cover Belviq. One is already on record as saying it won't pay.

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