Jim Cramer watched as the averages plunged on Monday, yet again. To him it is almost as if everything that investors once liked they now hate, and everything they once hated they kinda-sort like. Not any more than that, this is why the market keeps getting hammered.
That is why the "Mad Money" host took the time to explain how and why things are hated, especially the groups that used to be liked.
The first hate group is commodity risk. China is not just slowing these days; its industrial demand appears to be exhausted. That means anything that helps to extract or produce commodities are performing terribly.
Within that commodity risk umbrella are those companies linked to iron ore, especially one of the lowest cost producers in the world, Brazilian mining company Vale. On Monday it closed at $4, which is far from its $36 price just four years ago. This makes sense to Cramer as the price of iron ore has been cut in half in the past year.
Another commodity risk is copper, as the biggest copper producer in the U.S. is Freeport McMoRan and has been ailing, and has been on the radar of investors such as Carl Icahn, who recently purchased 100 million shares. Yet considering that China is a marginal buyer of copper, and uses 40 percent of it, Cramer finds it unlikely that Freeport will turn itself around.