This Energy Selloff Too Shall Pass

Commodity collapse. Again. Oil collapse again. Selling of everything related to the economy. Again. It's like the most interrelated world I have ever seen. Oil is down less than two bucks, so sell US Steel (X - commentary - Cramer's Take) and Exxon (XOM - commentary - Cramer's Take) and all infrastructure, run out of Deere (DE - commentary - Cramer's Take) and Caterpillar (CAT - commentary - Cramer's Take) and go buy ... T. Rowe Price (TROW - commentary - Cramer's Take)? Can it be that ridiculous?

Yes.

We are in Day Two of the energy selloff. They last three days, typically, and then start basing on Day Four. We have had a huge run. Day Two is always brutal.

What can you do in Day Two? You want to sell some Chesapeake (CHK - commentary - Cramer's Take) here down a couple so you can buy it back in the 40s? Love ya if you can do it.

Or how about XTO (XTO - commentary - Cramer's Take)? Down a quick 8. Buy it? No, too early in day's time. Sell it?

Again, sure, if you can get in and get out.

I have had mixed success doing so.

The momentum folks are out of control today.

They will stay out of control as long as the complex of momentum-fleers, put-buyers and short-selling ETFers puts pressure on.

We have seen this a million times before.

Don't freak out, just find the energy and energy-related plays you like, and if you insist, pick at a little here.

I would rather let the three days run its course and then take action.

Oh, and how hysterical is the rush into financials?

My, how stupid this market has become.

Random musings: If Apple (AAPL - commentary - Cramer's Take) didn't sell off on that guidance, I don't think it is time to buy more of it.

At the time of publication, Cramer was long XTO.

ALL JIM CRAMER BLOG ENTRIES | POST A COMMENT | READ COMMENTS  

---

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Watch Cramer on "Mad Money" weeknights on CNBC. To order Cramer's newest book -- "Jim Cramer's Stay Mad for Life: Get Rich, Stay Rich (Make Your Kids Even Richer)," click here. Click here to order "Mad Money: Watch TV, Get Rich," click here to order "Real Money: Sane Investing in an Insane World," click here to get "You Got Screwed!" and click here for Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he appreciates your feedback and invites you to send comments by clicking here.

TheStreet.com has a revenue-sharing relationship with Amazon.com under which it receives a portion of the revenue from Amazon.com purchases by customers directed there from TheStreet.com.