Jim Cramer's 'Mad Money' Recap: On the Brink of Disaster
NEW YORK (TheStreet) -- Don't believe that we won't go over the deadline, Jim Cramer warned on "Mad Money" Tuesday. Cramer said the possibility of a debt default is still in the cards and it would be catastrophic if it actually happened.
The markets seemed to wake up today as ratings agency Fitch put U.S. debt on a credit watch, the first step towards lowering our nation's AAA credit rating. Yet, despite the warning, Cramer said some in Washington still believe that a default is not a big deal. The Senate gets it, he said, but the House is still acting like anarchists, defiling the legacy of a nation that even during the Revolutionary and Civil wars took great lengths to make sure that a promise by the U.S. was beyond reproach.
Isn't there another way for Congress to win? Cramer asked. He's not a fan of out-of-control government spending either, but surely there has to be another way to make a point and curb entitlements. "I'm astounded at the recklessness," Cramer continued, astounded that anyone would risk our nation's status as the bedrock for the global economy to make a point.
That's why Cramer continued to urge caution as the next few days play out.
Off the Charts
Some stocks even Washington can't crush, Cramer told viewers, as he went head to head with colleague Tim Collins over the chart of Whole Foods Market
Collins noted two bullish trends in the daily chart of Whole Foods. He said the flag pattern created by the stock's rapid rally, then sideways trading in a narrow range is a very bullish sign. Additionally, Collins noted the MACD momentum indicator is indicating a bullish crossover, which makes him like the stock even more as its likely at the beginning of another big rally.
Collins also pointed out three big volume spikes in Whole Foods this past May, August and September, all of which were consolidation periods worth buying. Turning to the weekly chart, Collins also said the usually bearish dome pattern from March through August was followed by a sharp rise to the upside, once again proving that the bulls in the stock just cannot be stopped.