Don't Fall Into the Hawkish Trap

The commodity trade just keeps happening: Oil and gas and oil service and copper and coal must be sold because, well, the Fed is forcing down use of these, right?

Isn't that the bet? Isn't that why Arch (ACI - commentary - Cramer's Take) and Peabody (BTU - commentary - Cramer's Take) are down so badly? We have seen this trade happen so much, and the selloffs are so severe in these names, that people say, "It isn't worth it; they are too volatile."

People would rather buy underperformers or even nonperformers, hoping for a bottom, than be in stocks that can decline 5 or 10 points in a couple of days.

That's why these stocks have been the best place to be -- their fundamentals don't fluctuate, just the emotions behind them. Did the Fed solve the oil and gas crisis with its hawkish tone?

If you think that, then you must, must join the sellers, as they clearly believe that thesis. You should be dumping your Apache (APA - commentary - Cramer's Take) furiously and buying Citigroup (C - commentary - Cramer's Take); you have to sell your Foster Wheeler (FWLT - commentary - Cramer's Take) and pile into Wachovia (WB - commentary - Cramer's Take). Don't forget to jettison your XTO (XTO - commentary - Cramer's Take) and pick up some Alcoa (AA - commentary - Cramer's Take) -- big natural gas user! And why not -- while you are it, buy some Apple (AAPL - commentary - Cramer's Take)! The Fed's in control of that one, too!

Go to work.

You have my Fed wisdom from the church of what is happening this moment, even though I don't believe a word of it!

At the time of publication, Cramer was long XTO and Foster Wheeler.

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