Jim Cramer saw investors try to hide from China on Tuesday. They certainly tried their best and then cringed with pain when they were whacked upside the head by the plunging averages, yet again.
Unfortunately, for some stocks, there is no escaping China.
Even Apple couldn't hide from China when it dropped more than 3 percent on Tuesday. It recently reported a quarter where it sold 3 million fewer phones than analysts expected. Cramer saw that almost immediately following earnings, a broad consensus developed that assumed the iPhone miss was almost entirely due to the Chinese market.
"So, every time we get bad news out of China, like the doom and gloom from BMW last night, it reminds us that if Apple's most recent quarter had included July in the numbers, it would have been far worse," Cramer said.
And Cramer totally understands this logic as Apple's Chinese business now represents 26.7 percent of its sales, up about 15 percent from one year ago. And even though CEO Tim Cook assured investors that sales were strong in China this quarter, Cramer wonders if that is short-lived, based on how much the Chinese government is propping up its market.
So, while Cramer doesn't know how weak or strong Chinese sales really are, he does know one thing—Apple's stock has a really ugly chart.
"It's a fact of life. The stock is not for the squeamish, and it's both over-owned and over-loved," Cramer said. (Tweet This)
Meaning, Cramer thinks that too many analysts are recommending it and too many institutions are over-weighted in it and feel trapped.
However, he continues his long-term view with Apple, and accepts that there might be some Chinese weakness reflected in the share price. Thus, he continues to hold Apple in his charitable trust and is looking to buy more, not sell.