Parabolas Are Scary, but They Can Endure

There are good reasons the energy plays are making these moves.
By Jim Cramer ,

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Parabolic moves scare me. We are having parabolic moves in stocks like

National Oilwell Varco

(NOV) - Get Report

and

Southwestern

(SWN) - Get Report

and

Continental Resources

(CLR) - Get Report

.

But are parabolic moves ever deserved? Southwestern has been making big finds. Continental Resources had a gigantic oil hit this week. Much bigger; numbers can go higher.

Petrobras'

(PBR) - Get Report

voracious appetite for rigs gives NOV the earnings visibility through the next

decade

!

The moves are troubling. We know these stocks can't go up forever -- nothing can.

But let me reach back to the early days of the 1980s when we got the same issue: oil going up and finds galore. Anyone remember

Dome Petroleum

? The moves went on for doubles and doubles.

Of course, they then crashed.

But not until both the commodity crashed and the finds stopped

.

My conclusion: Neither curse is happening right now. So stick with the program.

Random musings

:

Apple

(AAPL) - Get Report

and

MasterCard

(MA) - Get Report

, the two tells of this market, are robust. That will give the green light to the funds that have held off buying this tape. Remember, that's what leadership does.

At the time of publication, Cramer was long National Oilwell Varco.

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

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