There are at some seriously negative catalysts in the market right now, and Jim Cramer believes before you can make money in stocks, you have to understand how they impact trading.
1. Many hedge funds have a negative bias. "With the averages having done nothing so far this year, and with the biggest move being that 6 percent swoon, the hedge funds that like to bet against the market are feeling emboldened," he said.
2. Persistent cold weather has created a negative backdrop for earnings. "Companies are routinely missing estimates because of the harsh winter weather," Cramer added.
3. Big momentum names have cooled down. "Salesforce.com broke down on a terrific quarter," noted Cramer.
4. Frothy stocks are leading the market. "Froth is a real bad sign," Cramer explained, "especially if it spreads from one or two sectors to the entire market."
5. China looks like it's a mess. Weakness in China is battering commodities and natural resource names with no relent.