The Market Is Too Spooked by Oil Prices

This market sometimes has no idea what it is doing. Our stock market cannot absorb another run to $70 or $80 oil. The Procter & Gambles (PG - commentary - Trade Now) and the Dow Chemicals (DOW - commentary - Trade Now) cannot withstand it. The consumer cannot stand $3 gasoline, as the whole rally in the Darden (DRI - commentary - Trade Now)/Brinker (EAT - commentary - Trade Now) cohort was on the backs of the lower price of gasoline.

We can't lose the Macy's (M - commentary - Trade Now) and the Kohl's (KSS - commentary - Trade Now) either, and we learned that they are dependent on low, stable gasoline.

Yet, this market has to have all three -- tech, oil and finance -- go up, and the most important of these remains oil! So we get smashed on Occidental (OXY - commentary - Trade Now), Transocean (RIG - commentary - Trade Now), Chevron (CVX - commentary - Trade Now) and Exxon Mobil (XOM - commentary - Trade Now). It's absurd!

I think the market's wrong. Tame oil in the $50s is still doable and won't kill the market. That's why I am thrilled that $60 looks like a tough level to take out, and I am gratified that natural gas is down at $3.66, making it the real bargain out there.

I say don't sell off the Honeywells (HON - commentary - Trade Now) and the Emersons (EMR - commentary - Trade Now) on these numbers, although I recognize that some of this weakness also has to do with unemployment claims putting the double-dip back on the table.

From my vantage point, my biggest worry is gasoline going up. I feel better today, not worse, about commodity inflation, even as I am chilled by the unemployment claims and the Obama administration's now-relentless attacks on business through climate control.

At the time of publication, Cramer was long CVX and EMR.

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