The market can no longer ignore the elephant in the room: Oil is going down, and the market is acting loony. WTI crude reached its lowest level since August 2011 on Tuesday, which left many investors wondering, "What is going on?"
Jim Cramer smelled a big, fat, floppy oil fish. Could it really be just the Saudis stirring the pot, or is there more to this story behind the scenes?
The U.S. has reached its tipping point for the amount of oil that can build up. That, combined with the weakening global economy, is creating the perfect storm for oil prices.
"We do not have the storage space nor the pipelines to get this oil to market, and the price discounts that are available in our country are, in the most landlocked places, well below whatever the Saudis are charging," said Cramer.
Read More Cramer: Oil problems are bigger than just Saudis
Often when the market is acting crazy, Cramer will turn to a professional chartist to explain what the charts indicate will occur in the future. Cramer used charts to circle back to some of the market laggards—Twitter, Facebook and Google—and see if they could come back with a vengeance.
Technician Carolyn Boroden who runs the FibonaciQueen website, and is Cramer's colleague at RealMoney.com, took a hard look at these stocks. Though they all recently reported disappointing numbers and were punished, Boroden wanted to see if there could be an attractive entry point coming.
Boroden found that the charts show that both Twitter and Facebook could have an upside coming, as long as they stay above their key support levels.
However, Google doesn't appear to have the same fate. This stock needs to break out above its near-term ceiling of resistance, she said. Until then, it should be treated with caution.
One stock that has the bulls and bears really going crazy, is GoPro. Cramer wonders, is this the real deal?
When the bulls look at this stock they see a company that could be a huge social media player within its video ecosystem.
When the bears look at this stock, they see just another overpriced fad.
"Me? I think GoPro is the real deal, but I also recognize that it's very expensive, which is why I told you to sell the stock a while back when it was trading in the $90s," said Cramer.
Meanwhile, the bears have gotten the best of is TimkenSteel. After being spun off in July, it had a beautiful rally. However, over the past month and a half, the stock has fallen from $50 in September to $36.
Though the company delivered a 3-cent earnings beat, Cramer suspects that the weakness experienced by the stock is due to worries about the global economy and the utilization of aluminum instead of steel.
Tim Timken, CEO of Timken Steel, shared his views with Cramer.
"If you look at the numbers we put out last week, they were good … Obviously, we did it in a market that is troubled by trends in oil prices, and I think we are being dragged down by that," Timken said.
If a stock like Timken Steel can be taken to the woodshed, Cramer just understand why the market is making no sense. Especially when it comes to oil.
Most of the companies in the actually benefit from lower oil prices.
So how the heck are there 317 million Americans fooled into thinking that lower oil is bad news, leading to the S&P to close down on Tuesday? He thinks the market is acting foolish, and suspects that it is the hedge funds causing the problem.
"I've simply come to the conclusion that it's just too darned hard for most of the hedge fund managers with their fancy algorithms who trade every minute to understand. No wonder they keep missing the big picture," Cramer said.
At the end of the day, it's those pesky hedge funds causing trouble for the market.
Read MoreCramer: The real fools bringing down oil
Craziness continued in the Lightning Round, when Cramer gave his take on a few caller favorites:
General Electric: "This one's really hard because my charitable trust is back and forth on this. It might be a wallpaper, but it's an inexpensive stock with good yield and I think you should hold on to it. I'm not telling you to rush out and buy it. Just hold on to it."
Acadia Pharmaceuticals: "We like Acadia. I want to own it. Anything that is working on Parkinson's disease is really important and I think they have a really good situation."
Read More Lightning Round: Wait to make a stand on this stock