Remember the other day when I said that if you were on margin, get off it? Looks like those that didn't have a chance to do so are having it done for them.
This most recent break in the market is reminiscent of other spectacular declines in
Red Hot stocks, typically magnified by people who have to sell because they don't have the money to own stocks overnight.
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Last April, and again last summer, we saw this peculiar pattern where people come in and pile on the most vicious of the declines. Often these are sales mandated by the margin rules.
I wish I could tell you that this just ends on a dime. But it hasn't historically. Usually it is compounded by false rumors about stocks that were hanging in there to complete the rout.
We are using EXTREMELY wide scales to buy stocks we love, as we want to deploy our cash into weakness. No, it's not fun. No, it's not conducive to laughter and guffaws and attaboys.
It's just the way it is.
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. Cramer's fund may be long or short certain stocks in his B2B rotisserie league or TheStreet.com New Tech 30 index. 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