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Cramer: Why this is the thinnest market in ages

It looks like Jim Cramer's acronym FANG has come back to bite investors. Cramer coined "FANG" to represent Facebook, Amazon, Netflix and Google and point out the stocks that are working in the market. But on a day when the averages took a total nosedive, he warned that FANG's leadership now represents everything that is terrible in the market.

"I want people to know, loud and clear, that FANG, the isolation of a handful of stocks that can power higher in spurts like we haven't seen in ages, is a bad thing, not a good thing for the market," the "Mad Money" host said.

Right now, Cramer sees that mutual fund and hedge fund managers are desperate for growth and are willing to pay anything for it. That funnel for growth is getting smaller by the day, which sends them to look at the names with proven stories and high prospects—thus they are hungry for FANG.

And Cramer gets why the market loves the FANG stocks. Amazon reported a truly outstanding quarter and hasn't even scratched the surface in China. Netflix wowed its fans with its new sign-ups and has become even more loved overseas. Not only that, but it doesn't plan to go into China until next year. Google was also finally able to shake its reputation of being a reckless spender when it brought on Ruth Porat as the new CFO.

The FANG alone cannot save the market from the bear

But it was Facebook that was the biggest mystery of FANG to Cramer. All of the other stocks have had colossal rallies after they reported, but Facebook hasn't even reported yet and has a history of selling off immediately after the quarter.

"The F in FANG could easily be left off, giving us ANG, which spells out, well, nothing unless you rearrange it into NAG," Cramer said.

However, to Cramer, FANG shows that the market is truly treacherous right now. Investors are selling everything that is not nailed to the floor, except FANG and a small handful of winners. That is a sign of desperation, not a sign of health.

"When you have a four-letter acronym that can represent pretty much the only stocks that are working in this market after five straight days of declines, that says be careful," Cramer added.

The truth is Cramer sees traders have both feet out the market door because of two sources of tension: the Chinese stock market crash and the upcoming Fed meeting on Wednesday.

And the worst of all sources of pain is anything related to commodities. Cramer fears that many investors have forgotten that during the great shale boom in the U.S. many oil-and-gas companies came public with tons of MLPs, which have now become toxic.

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"They're like Portuguese Men of War, little red things with 30-foot tentacles that can paralyze you if you aren't careful," Cramer said.

Rarely has Cramer ever seen the kind of a decline like the one he has seen in oil. Crude isn't coal, but it sure feels that way to him.

Ultimately, thin markets are bad markets, and this is the thinnest market Cramer has seen in ages. And the FANG alone cannot save the market from the bear. Cramer just wants to get past the Fed meeting and see what happens, and hopes that China just doesn't crash again on Monday night.

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