This Oil Move Is Getting Ridiculous
(Editor's Note: RealMoney is free to all TheStreet.com readers until Monday night. We hope you enjoy this article. If you would like to subscribe to RealMoney, please click here.)
Crude matters when it has moved up this fast. But the idea that the
Fed
may or may not be done is simply not the issue here. I think the issue is the bull-bear indicator, which is at the critical level -- we have almost 50% bulls, so we have an all-in situation.
The oil price is really getting to the point where it is short squeeze, short term -- NOT demand. It is very difficult to believe that oil should have jumped this much on supply.
Now, it is worth remembering that we are
not
in as situation where there is marginal oil going to hit the market today, which is what is needed to allow the shorts to cover. And Dan Dicker is the ax on this with
.
What I care about is the fact that there seems to be no short base whatsoever here. There's no one underneath. There's no margin
buyer of stocks
.
Given the nature of the biggest decliners -- retailers, banks, aerospace -- it's difficult to want to stick a bid in.
I know that I am really struck by the fact that the most damaged stocks totally correlate with the most damaged companies. In other words, this is not the level to bottom-fish --
yet
.
But it does feel like we are getting there. Witness that I bought a small amount of
Morgan Stanley
(MS) - Get Report
down a couple for
. Of course, it keeps falling. Still, the ones that have decent balance sheets, the ones that have the most long-term strong franchises, will come back, and the comeback move happens so swiftly and so hard that it's not a totally take-your-life-your-hands situation.
At the time of publication, Cramer was long Morgan Stanley.
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
Action Alerts PLUS. Watch Cramer on "Mad Money" weeknights on CNBC. To order Cramer's newest book -- "Jim Cramer's Stay Mad for Life: Get Rich, Stay Rich (Make Your Kids Even Richer),"
click here. Click
here to order "Mad Money: Watch TV, Get Rich," click
here to order "Real Money: Sane Investing in an Insane World," click
here to get "You Got Screwed!" and click
here for Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he appreciates your feedback and invites you to send comments by
clicking here.
TheStreet.com has a revenue-sharing relationship with Amazon.com under which it receives a portion of the revenue from Amazon.com purchases by customers directed there from TheStreet.com.