NEW YORK (TheStreet) -- While investors remain worried about a big plunge in the stock market, Jim Cramer points out more than 200 stocks are already in bear market territory after declines of 20% or more from their 52-week highs. Cramer, who manages the Action Alerts PLUS portfolio, noted that Walmart (WMT) has dropped 25%, and Procter and Gamble (PG) has fallen more than 20%, and they're not the only widely held equities in that boat, so a lot of damage has been done already.
Stocks could fall 3% to 4% further than last Tuesday's lows, warns Cramer. "Maybe we have to wait until every single stock is in a bear market, including Netflix (NFLX)," said Cramer. "What I say is get ready for another Tuesday" -- a true correction.
Cramer also pointed out that many companies that have already experienced stock price corrections are big firms with good balance sheets that are doing well, such as Allegheny Technologies (ATI) or Nucor (NUE). Cramer said he tends not to like steel companies, but he is watching to see if some of them drop into attractive price ranges, like Nucor at under $40 a share.
"There are levels where I'm going to get interested in the materials stocks, besides Martin Marietta Materials (MLM) and Vulcan Materials (VMC)," said Cramer. 'I just think that the gloom is so palpable that no one wants to hear about anything. So I'm not saying buy them here. I'm saying when you look at these stocks that are making money and they are down gigantically like they were last Tuesday, I'm not going to hate them."
Heading into the new trading week, Cramer found that 11 stocks have fallen more than 50%, and 24 have fallen more than 40%. Additionally, 78 stocks have dropped more than 20% and 104 were down more than 10%. Cramer also believes that an interest rate increase is already getting priced into the stock market.