Cramer: Cabot, Nucor Can Climb

Every now and then days like this happen. Days where it is so crazy, where the selling never ends and the buying never ends. Where the sellers just keep reloading and the buyer just keep buying.

Some of it seems like short-covering panic and some of it seems like sellers who cant take the pain any more. As I watched Cabot Oil & Gas(COG Quote - Cramer on COG - Stock Picks), a very good company, go down more than 10% today, a company that priced a gigantic piece of merchandise 30% higher a fortnight ago, I am astonished at the market's inefficiency.

When I see Nucor(NUE Quote - Cramer on NUE - Stock Picks) decline 10% on a good quarter and conservative guidance, I marvel at how ridiculous things are. Sure you can say if you look at a three-year chart "this is the end of the bubble." But how about value? How about the fact that COG is making much more money than it ever has and is unlikely, given the big shift toward natural gas, ever to make as little money as it did a few years ago.

Cramer Interviews Nucor CEO

There is no more dumping of steel, and there are not a lot of Greenfield steel mills being built anywhere, certainly no more than there were when NUE was at $79 instead of $59, but that doesn't matter either.

Yes, the rate of increase may not be increasing as it should, but the value creation at both companies is astonishing and not going away.

The value destruction at a Bank of America(BAC Quote - Cramer on BAC - Stock Picks) and a Comerica(CMA Quote - Cramer on CMA - Stock Picks) isn't going away, either.

These are all just giant proxies for runaway sentiment, with the sentiment being run by the thousands of hedge funds that are operating on the market daily.

But let's play it out. Let's say the big run in oil is over. Let's say it retreats to $100 or even $80. Nucor's earnings could be huge. Let's say natural gas drops to $9. COG will make a gigantic amount of money.

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