Autos, Aerospace Are Down for the Count

You can't lose autos and aerospace. Yet that's what's happening. The devastating aerospace downgrade by Goldman yesterday had pin action galore, wrecking everything from United Tech (UTX - commentary - Cramer's Take) and Parker-Hannifin (PH - commentary - Cramer's Take) to BE Aerospace (BEAV - commentary - Cramer's Take). It took the whole frame down with it and made everything toxic. And it happens at a terrible time. It isn't like Honeywell (HON - commentary - Cramer's Take), which with a few days left in the quarter can come out defending itself. Goldman rolled a perfect strike.

And now the bowlers are back for more with an equally devastating "sell everything" call based on GM (GM - commentary - Cramer's Take). Once again it is seamless: Lear (LEA - commentary - Cramer's Take) and Tenneco (TEN - commentary - Cramer's Take) get jettisoned too, but you know that Visteon (VC - commentary - Cramer's Take) and American Axle (AXL - commentary - Cramer's Take) and Johnson Controls (JCI - commentary - Cramer's Take) and BorgWarner (BWA - commentary - Cramer's Take) -- the good ones! -- go down with the car.

Mind you, I am not even counting the Citigroup (C - commentary - Cramer's Take) conviction sell -- something about which I have had conviction for ages, ever since it became clear that the board was letting Chuck Prince destroy the franchise.

In each of these big group downgrades, there were analysts holding on to one or two in the group or actually believing that things will be fine -- a la the Fed. But we know otherwise.

I always thought this market would have a bias down if it lost banking, homebuilding, autos and retail. But if aerospace breaks down again and the brokers actually react to this downgrade -- there are only a couple of buys left on the Street -- then we will drop that next 5% that I was looking for sooner rather than later.

At the time of publication, Cramer was long Goldman.

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