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What do you think of the action in oil so far this week?-- Megan from New Jersey
James J. Cramer:
Oil is going where it has to go and that reflects the supply and demand in the market.
I believe we're seeing classic profit-taking activity in oil stocks, because most oil stocks have heavily outperformed the market in the past year. As long as oil stays above $40-$50, these companies should make money hand over fist.
However, I believe this is a good time to take some profits in energy stocks, because you don't want to get caught
Right now, my strategy is to wait for my favorite oil names like
, which I've been booking profits on myself to come down a bit so I can buy more. (I own both for my charitable trust,
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