It's Even Uglier Than It Looks

Nothing being spared now. And it feels so freight-train-ish, as if there's an end of the world coming for exporters now that the world has begun a tightening cycle.

Today is a day when no one wants to hear about rest-of-worlders or companies that sell into China. They don't want to hear about U.S. Steel (X - commentary - Cramer's Take) -- down $22! -- or about Peabody Energy (BTU - commentary - Cramer's Take) -- down $7 -- or Freeport-McMoRan (FCX - commentary - Cramer's Take) -- down $7!

What tends to happen after you get these big reversals is that tomorrow the sellers are brought out by these declines, and the buyers are just plain frightened. They know that the big price increases that the exporters have been able to put on could be history, and the psychology doesn't help.

It's rather amazing that the buyers simply disappear, the ETF sellers appear and knock things down, and the people who loved at $170 are frantically trying to sell at $153.

Not helping things is that while much of the market is oversold, the stuff going down today isn't, and so therefore the market has more to fall.

This is a horrible market, one where it can fall on its own weight without any motivation beyond something we have known forever, that the European Central Bank might hike rates. It's like there isn't a dime in the world left to put in the market; it is all spent, and nobody has any ability to buy.

Man, was this a bad day.

At the time of publication, Cramer was long Freeport-McMoRan.

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