Cramer: Expect Another Day of Pain
NEW YORK (Real Money -- No, not yet. We are in one of those moments when the investment policy committees at some of these big firms are just now realizing that something must be fundamentally wrong. They are flummoxed, because nothing in the world is much worse than it was yesterday, but they do not want their double-digit gains to devolve into low-single-digit profits, so the desire to lock in is upon them.
The problem with these surprise declines is that these firms weren't prepared for what to sell -- and believe me, they are selling, not buying. So they are sorting through today and will take action tomorrow, not today, and that means you could have another day of pain.
They are scrambling to put the tail on the donkey. Reasons:
1. Greece and a Greek default?
2. War with Iran?
3. Transports rolling over?
4. Numbers are too high because of oil and currency?
They are going through their portfolios to see what can be hurt the most, and tomorrow they are going to take swift action. They can't be as swift as today.
Because you can't expect Europe to be up tomorrow -- it's a whites-of-their-eyes buy situation -- they don't feel too late, especially given that we just hit a top last week.
So be aware that the sellers are just now grouping, and they are frantic to figure out what's causing the real weakness, but in the end they will just sell first and ask questions later, because the charts are broken and the money's not flowing in.