RealMoney Radio Mailbag: Oil's Action

A listener wants Cramer's latest take on what the commodity's movement means.
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Editor's Note: The following are questions received from listeners of "RealMoney Radio." To send Cramer a question about topics from his radio show, click here. Listen to Cramer's latest radio show by clicking here.

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

being piggish.

Right now, my strategy is to wait for my favorite oil names like

EnCana

(ECA) - Get Report

and

Halliburton

(HAL) - Get Report

, 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,

ActionAlertsPLUS

.)

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