Oil's Drop Hurts the Wrong Stocks, for Now

The oil trap. Doesn't stop. Just crushes us. Now it is crushing the wrong stuff. We are having the companies that do well with lower oil getting hit as hard as oil! It's getting a little preposterous.

I watch Nike (NKE - commentary - Trade Now) as a great discretionary play, and it's going down with oil. So is Coach (COH - commentary - Trade Now). So is Best Buy (BBY - commentary - Trade Now), but at least that can be explained away by saying that the company reported a bad quarter. But how about Darden Restaurants (DRI - commentary - Trade Now)? That was the single biggest beneficiary the last time around.

In this kind of world where the correlations, which are all pretty nutty, take hold and knock down the wrong stocks, you have to come down, again, to price, just price.

We are too high, still. We still have not reached the level where we can separate data and make judgments on companies as individual companies. We learned from lower oil prices that the consumer is the beneficiary. We know this.

We can't go against it, longer term, even as we know it ain't working today.

At the time of publication, Cramer had no positions in stocks mentioned.

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Know What You Own: In Tuesday's trading, the most active stocks include Bank of America (BAC - commentary - Trade Now), the Financial Bear 3X (FAZ - commentary - Trade Now), the Financial Bull 3X (FAS - commentary - Trade Now), the Financial Select SPDR (XLF - commentary - Trade Now), the S&P Depositary Receipts (SPY - commentary - Trade Now), Citigroup (C - commentary - Trade Now) and the PowerShares QQQ (QQQQ - commentary - Trade Now).

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