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NEW YORK ( TheStreet) -- The markets can't afford to lose the consumer, Jim Cramer told his "Mad Money" TV show viewers Wednesday. He spoke after Macy's ( M - Get Report) reported disappointing earnings, raising doubts the American consumer could continue to bolster stocks.

Cramer called Macy's a national barometer for the health of the consumer, so when sales are sluggish there it's only natural that stocks from Home Depot ( HD - Get Report) to Sherwin-Williams ( SHW - Get Report) and Whirlpool ( WHR - Get Report) would fall in sympathy.

The slump at Macy's may only be temporary, said Cramer, but given how many hurdles the consumer is facing, from rising payroll taxes and interest rates on mortgages to fears over Obamacare and higher gas prices, it's easy to see why the markets are spooked.

There are still bright spots in the markets, though, mainly Europe, China and Japan, along with specific stocks such as Boeing ( BA - Get Report). But those may not be enough to keep stocks at their lofty levels, especially if more bad consumer news begins to emerge, said Cramer.

Cramer said the Macy's news should cause investors to be more cautious as things may continue to worsen before they get better.

Make Derivatives Transparent

Without a spotlight on the markets, it's too easy for those looking to commit fraud to cover their tracks, said Cramer, as he opined on the indictment of two former JPMorgan Chase ( JPM - Get Report) employees. JPMorgan is currently a stock Cramer owns for his charitable trust, Action Alerts PLUS.

Cramer said that every case of fraud that's exposed is a deterrent. But what's most disturbing about this case is so many smart people simply had no idea the fraud was occurring. That's what happens when derivatives are traded in opaque markets with no oversight, he said. JPMorgan did the right thing and reported the fraud as soon as it was found, he noted, but by then there were already huge losses.

Cramer once again made the case that all derivatives must be traded in public markets with complete transparency, eliminating much of the guesswork in evaluative exactly what these mysterious pieces of paper are actually worth on any given day.

Off the Charts

In the "Off The Charts" segment, Cramer went head to head with colleague Carolyn Boroden over the chart of Apple ( AAPL - Get Report), an Action Alerts PLUS holding, to see if the recent rally in the stock is indeed for real.

Using a weekly chart of Apple, Boroden noted a total of five Fibonacci ratios in the stock, all pointing to its bottom in April. In fact, the Fibonacci ratios on Apple's daily chart also predicted the bottom in the stock within a few days of when it actually occurred. She concluded that based on her research, Apple is poised for a major trend reversal.

Using more traditional technical analysis, Cramer noted that Apple's double bottom has created a strong floor of support for the stock and its recently crossed over its five-day, 13-day, 30-day and, most recently, its 200-day moving averages, all very bullish signs.

How high can Apple go? Boroden saw $582 a share as a shorter-term target, noting that it could approach it's all-time high of $792 a share thereafter.

Cramer said he's not expecting $792 anytime soon, but he does remain bullish on the stock, as it still trades at less than 12 times earnings and has a lot of exposure to the strength building in Europe.

Lightning Round

In the Lightning Round, Cramer was bullish on Rite Aid ( RAD - Get Report), CVS Caremark ( CVS - Get Report), Walgreen ( WAG, Standard Motor Products ( SMP - Get Report) and Lockheed Martin ( LMT - Get Report).

Cramer was bearish on Lorillard ( LO

Executive Decision: Daniel Junius

In the "Executive Decision" segment, Cramer sat down with Daniel Junius, president and CEO of the speculative biotech firm ImmunoGen ( IMGN - Get Report), a stock that's soared 36% since Cramer first got behind it in December 2012 and 18% since he last spoke with Junius in late February.

Junius provided an update on his company's great cancer drug, Kadcyla, which received approval in February. He said the drug has been performing very well and the company's partners are excited about its prospects. Kadcyla is only getting started, Junius noted, and sales in Europe have yet to begin and other indications for the drug are possible.

Junius also responded to recent negative comments surrounding ImmunoGen's four other compounds under development, and in particular concerns over their toxicity in patients. He explained that as part of drug development, dosages are increased to determine at what level they are intolerable to patients, and then the dosages are dialed back to acceptable levels. ImmunoGen's new drugs are no more toxic than anything else on the market, he noted, and, in fact, they're far better.

When asked about the company's cash reserves, Junius said ImmunoGen has plenty of cash for development but may consider more when their drugs are reaching the approval process. By then, however, there will be a lot more data on what those drugs are capable of doing, so finding additional funding will likely not be a problem.

Cramer said he felt the negativity surrounding ImmunoGen was unwarranted given its many successes thus far.

Am I Diversified?

In the "Am I Diversified?" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets.

The first portfolio included: Johnson & Johnson ( JNJ - Get Report), Walt Disney ( DIS - Get Report), Micron Technologies ( MU - Get Report), Ford ( F - Get Report) and Xerox ( XRX - Get Report).

Cramer said that Micron and Xerox were both technology stocks and he'd sell Xerox and add a defense stock in order to be properly diversified.

The second portfolio's top holdings included: Apple, BP ( BP - Get Report), Carlyle Group ( CG - Get Report), Duke Energy ( DUK - Get Report) and AT&T ( T - Get Report).

Cramer said this portfolio was perfectly diversified.

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

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

To email Scott about this article, click here: Scott Rutt

Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, F and JPM.

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."

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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.