Oil Stocks Will Keep Trampling Bears

Oil bears, take note. You take out some barrels from Nigeria -- just a smidge -- and here you are, back at the highs, even as the economies worldwide are slowing.

I have said over and over again that this is not a demand-side issue. Demand will be driven by countries that have more growth and more secular growth -- India, China -- than we will ever have.

Plus it is time to start realizing that this national ethanol obsession is a total non-starter that is doing nothing at all to dent oil demand. In fact, any fuel that is measured in gallons of use, not barrels, means "forget about it."

Meanwhile, of course, you get stocks like Darden (DRI - commentary - Cramer's Take) being completely unbuyable because of raw costs and gasoline. I can't believe where that stock is, just can't believe it.

But it ain't going higher unless energy goes down and ethanol is de-emphasized. And I just don't see that happening.

People want to know if oil and gas can repeat. I say they can, for a simple reason: the valuations are still very, very low.

Until they get hit, keep riding.

Random musings: Daunting selloffs in Clorox (CLX - commentary - Cramer's Take), P&G (PG - commentary - Cramer's Take), etc. VF Corp. (VFC - commentary - Cramer's Take) is amazing -- it's now below where it was when it preannounced to the upside! ... A Bear Stearns (BSC - commentary - Cramer's Take) director is dumping stock. Sheesh!

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

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