Did the entire market come down with a case of amnesia, and forget all about when the miners, industrials and biotechs roared on Monday? Judging by the action on the averages on Tuesday, Jim Cramer suspects that could be the case.
"Last night I tried to be skeptical, if not downright critical, about the rally, suggesting it could easily be repealed as the week went on. I didn't know it would be repealed immediately," the "Mad Money" host said.
That's because Cramer was not expecting that investors would be dealing with a Chinese currency devaluation, which makes China's goods cheaper to export and U.S. goods more expensive to sell there.
The devaluation shocked Cramer so much that he decided to review what happened, so that investors can be prepared for what is next.
First, China is totally desperate. It is clear to Cramer that the Chinese Communist government is trying to put everyone to work while also trying to stop widespread corruption in business and politics. It tried to fix the issue by exports, but then Europe fell apart. Then it tried infrastructure, but now it seems as if everything it needed has been built.