Here's a hunch, but I get paid to have hunches. Some Net fund, some fund that is built on being long the Internet, is going belly-up. You can smell it. These companies are now falling on their own weight. They can't lift for a second. The Net infrastructure and dot-com world is under more pressure than I have ever seen it and it has to be because someone, or some funds, are blowing up.

This is a sickening decline and it is encompassing everything that was meant for the Net. The arms merchants (i.e. the suppliers to the Net) are just being crushed and I have to believe that the decline is caused by massive liquidations by funds that have invested Net-specifically. It reminds me of the selloffs I have seen when oil-service stocks got liquidated and when gold stocks got liquidated. The sellers are of the distressed mutual-fund variety, not individuals.

Until we see the news of the blowup, we aren't buying any of these names. Too dangerous.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund had no positions in any stocks mentioned. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at

jjcletters@thestreet.com.