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VFC, M, GOOGL, AMZN: Jim Cramer's Views By Jim Cramer | Oct 26, 2015 | 01:00 AM EDT

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All It Takes Is a Little Bad News

Posted at 1:08 p.m. EDT on Friday, Oct. 23, 2015

Choppy. Slight slowdown. And with those three words and a small guidedown from VF Corp. (VFC - Get Report), there goes retail. (VF Corp. is part of TheStreet's Trifecta Stocks portfolio.)

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This market overreacts to any input, particularly a negative one. So when VF Corp., the fabulous worldwide apparel company, talked this morning about a "pretty much across-the-board slowdown" that will take growth from a projected 10% revenue growth to 8% even as it reaffirmed its earnings forecast, investors in retail stocks decided to bail from every one of the retailers, especially the department stores. Did they check which stores were really being hurt? Macy's (M - Get Report)? Kohl's (KSS)? Target (TGT)? Nordstrom (JWN)? Did they find out if VF Corp.'s issues extended to Foot Locker (FL) or PVH (PVH)? (Target is part of TheStreet's Action Alerts PLUS portfolio.)

Nope, they just presumed that every retailer's having a terrible fall and it was time to exit. Sell sell sell.

Those who didn't even want to do any work on which retailers in particular might be hurt just blew out or shorted the handy retail ETF, which added more pressure to the group.

It didn't matter, by the way, that VF's worldwide business is very strong, particularly in China. Nobody seemed to even be listening to that. What a waste of time that part of the call was! All that mattered was "choppy" and "soft," coupled with some inventory numbers that did seem high relative to what we are used to seeing from VF.

We have learned a couple of things in the last few months about this market. For example, when one hospital chain has a problem, sell all hospital chains. When one cybersecurity company has a problem, as Fortinet (FTNT) did today with some weaker billings, they all go down, again aided by a convenient ETF that allows for instant shorting of the group. When one biotech company goes down, they all trade down. One health maintenance organization ... OK, you get the picture.

Some of the reason why we got such a domino effect here is that VF is the best of the best, the most consistent apparel company in the industry. We would love to hear from competitor PVH that all is well, but it...