Sometimes, stocks fall like dominos, Jim Cramer told his Mad Money viewers Wednesday. One by one, sectors were getting hit today, Cramer explained, as the markets played three games all at once.
The first line of dominos emanated from Apple (AAPL) , where early reviews of the new Apple Watch called attention to connectivity issues with the devices' cellular service. While Apple acknowledged it was preparing a fix for the issue, investors took the news as a reason to take profits, sending shares of Skyworks Solutions (SWKS) , Qrovo (QRVO) and Broadcom (AVGO) along with it.
Finally, there was the miserable quarter from Bed Bath & Beyond (BBBY) , a retailer that isn't keeping pace with Amazon (AMZN) . That news sent shares of retailers lower, including Macy's (M) , Kohl's (KSS) and a slew of others.
That's how just three stocks can translate into declines for dozens, Cramer concluded. And while Cramer said he's still bullish on Apple and its suppliers, he'd stay away from the food stocks and the retailers, as those companies deserve to head lower.
Over on Real Money, Cramer says if you own no tech, take a stab at your favorites, but take a pass on those others: the domino declines just make too much sense. Get his insights with a free trial subscription to Real Money.
Off the Charts: NVIDIA
In the "Off The Charts" segment, Cramer checked in with colleague Carolyn Boroden over the chart of Cramer's favorite semiconductor maker, NVIDIA Corp. (NVDA) , after the news today that Tesla (TSLA) may be partnering with rival Advanced Micro Devices (AMD) on new autonomous driving technology.
Boroden correctly called NVIDIA's recent rally, with shares crossing her expected price targets of $180 and $188 a share. Now however, Boroden says she feels shares are vulnerable to a pullback, as they've surpassed the stock's typical rally. Shares have also been rallying for 25 days, and the typical rally lasts between 25 and 29 days.
Cramer said he still loves NVIDIA, but he loves protecting profits even more. With today's news, it may be the perfect time to lock in some gains and if you don't own NVIDIA, next week might be a good time to buy.
Cramer and the AAP team are taking a close look at the Fed's outlook for the economy and how it affects financial stocks and the broader market. Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts PLUS.
FedEx Makes a Comeback
Sometimes you need to grab the bull by the horns and buy, buy, buy, Cramer told viewers, and that's exactly what investors in FedEx (FDX) were doing today, reversing a $3 decline in the stock yesterday with a $4-per-share gain today.
Cramer said that FedEx has always been a play on global trade, just like Boeing (BA) and Caterpillar (CAT) . When the company reported earnings Tuesday, the earnings were good and the outlook even better. But investors latched onto the headlines, related to the hacking of FedEx's European subsidiary.
But unlike the massive Equifax (EFX) data breach, FedEx has been upfront and honest and going above and beyond to remedy the situation to the tune of $300 million.
With the hacking incident behind them, Cramer said that FedEx could earn up to $15 a share next year, which would warrant a share price $50 higher than where they trade today. Global trade is the best its been in years, management said, and FedEx is a big beneficiary from the rise of ecommerce around the globe.
Off the Tape
In his "Off The Tape" segment, Cramer sat down with Angela Marcus, CEO of the privately-held Get Your Pet, an online connection service for pet adoptions.
Marcus explained that no animal shelter is big enough to house all of the pets that are surrendered each year, which is why only half of all pets given to shelters are ever adopted. For $99, Get Your Pet allows pet owners to to find a new home for their pet, connecting them directly with people who are ready and able to adopt.
Right now, Get Your Pet is in start-up mode, Marcus explained, and is getting the word out about their home-to-home pet adoption service, but they plan on being profitable by providing advertising and other services to help make pet adoptions even easier.
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