RealMoney Radio Mailbag: Oil's Action
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,
.)
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