Energy's Tumble Stirs Up a Rally

Believe me if it weren't for Sandisk (SNDK - commentary - Cramer's Take), Apple (AAPL - commentary - Cramer's Take) and Texas Instruments (TXN - commentary - Cramer's Take), you would see the money going right into tech today as part of the out-of-oil-into-tech trade that ruled simultaneously with the out-of-oil-into-banks trade.

I like the natural gas stocks as part of wholesale shift into nat gas from all other carbons. Obviously, this has now become the toughest trade in the book, given the unbelievable collapse in natural gas. I am always amazed that the decline entices only more sellers, but that's what's happening in crude, too, as the demand has dried up and the industrial companies don't seem to be taking advantage of this decline to lock in these prices. I know that it looks like we are going to test the $8.99 level that is long-term support.

The idea that you can buy a high-quality company like XTO Energy (XTO - commentary - Cramer's Take) after a good quarter down more than 10% after it has already been pummeled down from $71 is just too much of an opportunity to me. I am also picking at Devon (DVN - commentary - Cramer's Take) and Cabot (CBT - commentary - Cramer's Take). These prices are reflecting $9 nat gas at this point, so when it gets there -- and again, I think it will -- I actually believe these stocks bounce.

Of course, I wish I owned none and could buy them for the first time right here, but that is a dramatic case of wishful thinking. (I also am nibbling at Freeport-McMoRan (FCX - commentary - Cramer's Take), which has a history of being conservative, and for its scarcity value alone I am buying it, even as I know it has become hated, too. I wish I could short so I could join Bob Marcin in what is now looking like his brilliant coal trade.)

Right now, though, it is all about the pricing collapse of the energy complex. Just as we can't rally with both housing price declines and oil and gas, we at least have oil today.

Random musings: if I were Owens Illinois (OI - commentary - Cramer's Take), I would lock in these nat gas prices, as when they got to $13 the market took the stock apart. ... Last night Jacobs (JEC - commentary - Cramer's Take) reported at about 8 p.m. It was obviously good; what the heck were they thinking?

At the time of publication, Cramer was long Cabot, Devon, Freeport-McMoRan, Gilead, Procter & Gamble and Schering-Plough.

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