China-Led Drop Offers a Time to Buy

If China has pulled back 20%, do we have to pull back 20%, even though they were up 80% and we are up 9%? Are we so in lock step now that when China catches a cold, we are the ones with pneumonia?

I don't think so.

It's such an easy story to stretch out, though you can see that our Freeports (FCX - commentary - Trade Now) and our Exxons (XOM - commentary - Trade Now) can get hammered.

But how about the 85% of the market that doesn't sell into China? Do we decide to take back the Target (TGT - commentary - Trade Now) gains of yesterday? How about the Apple (AAPL - commentary - Trade Now) gains -- I mean, they will eventually sell iPhones there, so eventually their numbers will be destroyed by the sales that they get there because the Shanghai index is down, right?

I am sitting here right now trying to figure out how much Express Scripts (ESRX - commentary - Trade Now) should be down off of China. Or Ford (F - commentary - Trade Now). Or Citigroup (C - commentary - Trade Now). Or BB&T (BBT - commentary - Trade Now). Frankly, it's a tough one -- I am guessing 20% because prevailing wisdom now says 20%.

What's the hiccup for Wendy's (WEN - commentary - Trade Now)? Panera (PNRA - commentary - Trade Now)? Bristol Myers (BMY - commentary - Trade Now)? Aren't they all a form of Vale (VALE - commentary - Trade Now)?

I do love the linkage between BHP Billiton (BHP - commentary - Trade Now) and China, and I get the Union Pacific (UNP - commentary - Trade Now) linkage and the Potash (POT - commentary - Trade Now) linkage.

But some of the other stocks that will come down today off of China are harder for me to figure out.

Or maybe I have ... they shouldn't go down at all. They will though. Sounds like an opportunity to me.

Random musings: Don't forget Doug Kass on "Squawk Box" today...

At the time of publication, Cramer was long Express Scripts, Bristol Myers and Vale.

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