A horrendous piece of manufacturing data from China sent the U.S. stock market tumbling yet again Tuesday, taking the price of oil lower along with it. Jim Cramer is hoping the price of crude heads higher, because many oil companies could be in real danger if it sinks any further.
"Like I keep telling you, there is roughly $200 billion of debt from these oil companies on the high yield bond market, and when the price of crude is plummeting everyone starts getting scared that something terrible could be lurking in the world of fixed income," the "Mad Money" host said.
That is why Cramer sought the insight of Carley Garner. She is a technician, co-founder of DeCarley Trading and colleague of Cramer's at RealMoney.com. Garner has a successful history of predicting the trajectory of crude on "Mad Money" and spotted the bottom in crude and the volatile events following afterward.
So where does Garner think oil is heading next?
Looking at the weekly chart of West Texas Intermediate Crude and the Commodity Futures Trading Commission's weekly Commitment of Traders report, Garner came up with a pretty stunning revelation. The CFTC report tells investors exactly how the major players are betting in the oil futures market, including the big institutional money managers who tend to drive the markets.