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NEW YORK (TheStreet) -- The markets are moving at lightning speed, Jim Cramer said on "Mad Money" Wednesday. That means in order to be successful, investors need to be able to navigate the crosscurrents in real time.
That was the case with Apple (AAPL), a stock Cramer owns for his charitable trust, Action Alerts PLUS. Apple had been trading for weeks on expectations of sales in China. Today, activist investor Carl Icahn called the company "disgraceful" for not returning more capital to shareholders -- instantly, the markets forgot about China and started trading on Icahn.
eBay (EBAY) posted in-line earnings today with miserable guidance, but all turned sunny when Icahn made a comment that he may get involved with the company and advocate a breakup.
Another company that turned on a dime was Netflix (NFLX), which saw shares surge 17% on huge earnings and subscriber growth. Meanwhile, IBM (IBM) shares fells as its lofty goals and five-year plans appear to be faltering badly.
In other sectors, from oil and natural gas to telco equipment, the trading has been fast and furious, Cramer concluded. That's why investors need to hold onto their hats and prepare for what could be a wild ride.
Executive Decision: Moshe Gavrielov
For his "Executive Decision" segment, Cramer spoke with Moshe Gavrielov, president and CEO of Xilinx (XLNX), an Action Alerts PLUS holding that's proven Cramer's rule of never trading the headline. After shares plummeted on a penny-a-share earnings beat with weaker guidance, they quickly rebounded 2.2% as savvy investors looked at the key metric, Xilinx' new 28-nanometer chip sales, which were up 79% year over year.
Gavrielov said that while Xilinx was only able to deliver at the low end of its revenue range for the quarter, its other metrics came out just fine. He said the company is still on track for 2% to 6% growth for 2014 and the company is still in the early stages of the new 28 nanometer rollout.
When asked why 28 nanometers is so important, Gavrielov explained these new, smaller chips are necessary to bring features like video to cellphones. Video is very demanding on both phones and infrastructure, he noted, which is why we're seeing a surge in spending to keep wireless customers happy around the globe.