Mad Money

Cramer Remix: This group is ready to rally

Cramer: This group ready to rally

The past few months have been a very difficult time for both pharmaceutical and biotech stocks. The group initially came under fire when Hillary Clinton crushed the sector with a tweet accusing companies of price gouging. Now with Congressional investigations into drug pricing and stocks like Valeant getting crushed, Jim Cramer wondered when the selling will stop.

"For all of the sound and fury from Washington, I think that eventually people will realize that they are throwing the baby out with the bathwater when they sell every drugmaker under the sun," the "Mad Money" host said.

More importantly, with an economic slowdown coming, these are exactly the kind of stocks that Cramer wants investors to buy. However, he also knows that trying to bottom fish in the drug space has been a dangerous endeavor.

That is why Cramer turned to Bruce Kamich to take a look at what the charts have in store for the future. Kamich is a chartered market technician, a professor at Baruch College and Cramer's colleague at

Kamich found that while some health care and biotech stocks still look vulnerable, the pharmaceutical space appears to have bottomed. In fact, Cramer thinks Bristol-Myers Squibb could shoot to the moon!

Another biotech stock that was crushed on Tuesday was Radius Health, the development stage biotech company focused on creating drugs for osteoporosis and other endocrine-mediated disorders.

While the stock has rebounded dramatically following the biotech sell-off, it tanked more than 11 percent on Tuesday.

Initially the stock roared back on October 15 on takeover speculation that Shire might be interested in buying the company if its bid for Baxalta fell through. It also rallied because of strong data on its big osteoporosis drug that is in phase 3 trials that would be submitted to the FDA for approval by the end of the year.

However at its investor day on Tuesday, Radius announced the application could be delayed by up to three months in the U.S. to include more data that won't be available until December. That news caused the stock to be taken to the wood shed.

To sort it all out, Cramer spoke with Radius Health CEO Bob Ward.

"The thought was if we all work throughout now through December — both us and our vendors and Europe and our whole supply chain — we could get it done, but it would be a heroic undertaking. And we said that is not prudent, let's step back," Ward said.

Often, Cramer has seen that market pain will often breed negativity. And when there is too much pain, there is too much negativity. But sometimes, that negativity will create a market that is the opposite of what is expected.

"I know, I felt that gloom. It was palpable. All last week as retailer after retailer disappointed, and the oil and technology stocks were pounded mercilessly, I was blown away by how genuinely weak the market had become," the "Mad Money" host said.

So, while stocks closed mixed on Tuesday, Cramer found that the recent sessions served as a lesson that sometimes the market will do the opposite of what is expected. If there is too much strength in the economy, then whatever slowdown thesis existed that day will become history. If oil is too weak, then the stock market will go lower.

"Those two factors, Fed worries and lower oil prices, are riptides that cannot be navigated no matter what good news we may be getting, especially when most of the good news relates to robust consumer spending, something the Fed no doubt feels it must react to with a December rate hike," Cramer said.

Read More Cramer: 2015 is a difficult year for profits

We have to assume that the consumer is just not shopping for the same kinds of things, notably apparel, and it involves a big shift in attitude and behavior
Jim Cramer

Later this week, one of the most highly anticipated initial public offerings of the year will hit the tape for Square, the payment technology company founded by Jack Dorsey, who is also the co-founder and current CEO of Twitter. Cramer decided to take a look at Square and see if it's worth blessing for investment.

Square is the company known for those little devices that plug into a phone for the purposes of a credit card reader, along with the iPad stands that transform a tablet into a permanent point-of- sale terminal. It sells the devices for little to nothing, but then every time it is used to swipe a customer's credit card, it takes a 2.75 percent cut.

"In short, Square has an intriguing concept with fast growth as well as a very cool and popular set of products, but at the same time, there are a number of serious issues that have people very concerned about investing in this company," the "Mad Money" host said.

Read More Cramer: I bless Square's IPO ONLY if this happens

Cramer warned investors not to write off the consumer, yet. There is so much mixed data coming out of retail right now, it would be a mistake to assume all things in retail are negative.

One could assume that the consumer is not spending based on the negative stories Macy's, Nordstrom and Gap told. But things became confusing when TJX, Home Depot and Wal-Mart all reported fantastic numbers on Tuesday.

"We have to assume that the consumer is just not shopping for the same kinds of things, notably apparel, and it involves a big shift in attitude and behavior," the "Mad Money" host said.

In fact, Cramer thinks it is totally understandable that no one knows what people are spending their money on. The clues have been so varied and hard to read that he can't blame anyone for being confused.

Read More Cramer: What the heck just happened in retail

In the Lightning Round, Cramer gave his take on a few caller-favorite stocks:

Skechers USA: "It has just been crushed here. But remember, it's still up 37 percent for the year and I want to buy Skechers not sell it."

Gilead Sciences: "I'm giving you a four-for-one! I still like Gilead, I still like Regeneron, I still like Celgene, and my charitable trust, believe it or not, has been buying Biogen. That is the most hated stock in the universe. Oh no, never mind, that's Valeant."

Read MoreLightning Round: The most hated stock in the universe