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Embrace the $50 Level; Oil Does

The futures seem to hug this price, so get over the emotions and get used to it trading here.
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Editor's note: This story was originally published on RealMoney on May 25 at 2:10 p.m. EDT.

Not $30, but not $70. Maybe not $40, probably not $60. How about $50, though? Does that make sense?

That's the level we seem to hug, no matter what; that's where we seem to want to live.

I'm talking oil here, and I have to tell you that if oil were a stock, you would be saying, "Every time this sucker gets below $50, I want to buy it, but if it rallies much to $55, I am out of here."

Of course, it isn't oil. It's a future on a barrel of oil, and, perhaps because it isn't a stock, there's way too much emotion involved. Every time we see the future pierce $50 on the downside, you get people talking about $28 again.

Today, with oil above $50, I see an interview on the tape with Charlie Maxwell, an old oil vet, talking about $70.

Bottom line: Take the emotion out of it. This sucker likes $50 and change. That's where it lives. Get used to it.

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And invest that way.

James J. 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 by

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