Here's Where the Energy Money May Go

So with the gigantic shift out of anything oil and gas, we are searching for places to put money beyond financials, and it isn't clear where the money will go.

It can go into financials, of course, but the issue there is, did expectations get too low, or did the companies simply deliver decent earnings relative to expectations, or did the failure of these companies to be "IndyMac" coupled with the short-selling rules just make them lift?

Could the bottom really have been the day that the Fed's Bill Poole said Freddie Mac (FRE - commentary - Cramer's Take) and Fannie Mae (FNM - commentary - Cramer's Take) are insolvent, coupled with the failure to take out those lows when Bill Ackman suggested wiping out their equity on CNBC?

Here's what I think: It's a short squeeze that must be followed by a raising of equity. Without it, we will have another one of these ups then downs. The SEC gave these guys a window. I also believe the examiners will do the same. This is that forbearance moment when the Treasury has said "look the other way" and let these guys go. Anything but more runs. Anything but more lines at the door. I think that's truly what's going on,

They either take advantage of it to refinance, or they revisit the lows. Biggest squeeze I have ever seen in my lifetime, I should add. At these prices I would rather be a seller of these, not a buyer. I think squeezes can last three days, and this is day two, and I am convinced that's enough time for banks to get stock deals done. Watch Wells Fargo (WFC - commentary - Cramer's Take). If that goes down, the others will too.

Can the money go into the industrials? Tough call, as steels are getting killed but the United Technologies (UTX - commentary - Cramer's Take)-type names are capable of making a comeback, provided that you don't run into an Eaton (ETN - commentary - Cramer's Take) problem.

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