It doesn't matter what good news is released into the market this week, the market seems to want to go lower. Investors are bracing for a possible rate hike from the Federal Reserve this month, and Jim Cramer sees the damage happening right now to stocks.
But is it a good idea to join the crowd of sellers right now?
"I'm old enough to remember what the market has been like in the 10 days leading up to a rate hike, and you would get exactly this kind of action," the "Mad Money" host said.
One major issue in the market was oil, and Kinder Morgan's butchering of its dividend to 12.5-cents from 51-cents. Kinder Morgan is the gigantic pipeline company run by Rich Kinder, who many had tremendous faith in. Last year he repeatedly told investors he would raise the dividend regularly. It was pretty much gospel to Cramer that he knew what he was doing.
The cut in Kinder Morgan's dividend was devastating to many shareholders, and it has left a whole group of investors that were seeking income totally crushed. When a CEO screws up this much when so many people believed in him, Cramer worries what the other companies could be up to. This move shook the confidence of those that rely on pipeline stocks for their high yields.
"What a disaster. Now all fossil fuel stocks are innocent until proven guilty, and while I'm not as negative as the others I don't see a need to own any of these names. I say sell them, but only into strength," Cramer said.