This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Always a Quick Draw; Falling Euro Hammers Oil Stocks: Jim Cramer's Best Blogs


The Falling Euro Hammers Oil Stocks

Posted at 12:02 p.m. EDT on Thursday, Nov. 7

Currencies bore me. Why? Because I know they bore you. Unless you travel overseas, you don't think about currencies. They are irrelevant to almost everyone reading.

But some days, currencies are almost all that matter. I say "almost," because this is Twitter's (TWTR - Get Report) day. However, a cut in the interest rates in Europe this morning -- some called it a surprise cut, even as almost all the people I know were looking for it --caused the euro to get hammered and the dollar to shoot up. Because oil is denominated in dollars, that allows more oil to be bought for less money, and that's causing a huge decline in everything oil-related, even as the companies themselves are doing extraordinarily well.
[Read: <a target="blank" data-add-tracking="true" href=" http://www.mainstreet.com/article/money/investing/why-investors-get-fooled-stocks-tesla-apple-150-and-twitter"><em>Why Investors Get Fooled by Stocks like Tesla, Apple -- and Twitter</em></a>]

Because the currency is the impetus, not the companies, it is very confusing to people, but it is the reason, not the numbers. For example EOG Resources (EOG - Get Report) reported a magnificent number and gave a big guide-up, but it gets hit anyway.

The plunge in the euro and the sharp rise in the dollar may not last. I would be a buyer of the oils, not a seller, because I believe, in the end, that demand for oil is still strong, and the assets in the ground are huge.

Still, though, I see on my screen what you see, and we know currency is the reason, not the earnings, and that's where I think the opportunity comes in.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free

Markets

Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs