Cramer: Scaling peaks inside the market

It's one of the most dreaded words on Wall Street. Yet with the month and quarter drawing to a close, Jim Cramer says investors must ask themselves, what if anything has peaked?

Looking deep inside the market, Cramer says there are areas that look as if they've topped out with commodities emerging as the poster child for this problem.

"Any commodity that's tethered to growth has been coming down. I am talking about iron ore, copper, oil, and steel," Cramer said.

Also, commentary from Ford suggests auto sales may have peaked, too "Ford talked about how sales are much worse than expected in Europe and South America. Much worse."

Adam Jeffery | CNBC

Also Cramer said the latest data from Case-Shiller was nothing to write home about. On a seasonally adjusted monthly basis, prices in the 20 cities fell 0.5 percent in July. A Reuters poll of economists had forecast a flat reading. Nonseasonally adjusted prices rose 0.6 percent in the 20 cities on a monthly basis, disappointing expectations for a 1.1 percent rise.

The data could mean housing prices have peaked, too.

On top of that, Cramer noted that the strong U.S. dollar could mean that US exports have peaked and he thinks the price of bonds is probably near a peak too.

All told, it would sound like the market is in trouble. However, just because areas have peaked, Cramer isn't sure investors should write the market off, altogether.

"Not all peaks are bad," he said. For example, lower oil is a boon for consumers, and it could send shares of related companies higher. Also lower commodities benefit many firms, such as the food makers. It means input costs are declining.

On a similar note, lower housing prices could spark sales, which in turn would generate a virtuous ripple across many stocks. And the stronger dollar makes foreign goods less expensive to American buyers.

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Therefore, if you have money in the market, don't get spooked when you hear talk of peaks. Instead, ask yourself what has peaked and how it impacts your holdings. Then, make decisions from there.

Call Cramer: 1-800-743-CNBC

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