Eventually mutual funds won’t be able to resist buying RIMM and AAPL, as well as Google , which Cramer said would most likely bottom before reaching $350. When these stocks start ticking up before the market opening, even despite a decline in futures, that’s the sign that the funds are buying in.
The PHLX Semiconductor Index is down 4.5%, just half a point away from a traditional buy-in figure, Cramer said. Usually a dip of 5% to 7% is the sweet spot, so the Mad Money host recommended keeping an eye on this sector.
Cramer also criticized a Wall Street Journal story that lumped stronger restaurant firms like Darden and Panera Bread in with Burger King , calling it “not a fair characterization.” Darden recently made the 52-week high list and Panera was trading close to its own highs. That wouldn’t happen if these two were struggling like BKC.
Lastly, the market seems to be punishing any company that didn’t prepare for this downturn. Take Eaton , for instance, which was off about 10% on Monday. The company was just "too bullish," Cramer said, and now it is paying for it.
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