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 though the Chinese market rallied on Monday night, the news from companies like BMW reminded the market that it still will cause pain. BMW, the world's largest luxury car maker, warned on Tuesday that its financial forecasts for the year could be at risk if the Chinese market deteriorated any further.
And it's not just BMW, as Audi, Ford and General Motors all are struggling, too. Cramer thinks they clearly made big bets on China and have been rewarded, right up until the Chinese market hit a wall in June and prompted a vicious downward spiral.
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.