RealMoney Radio Mailbag: Oil's Fickle Fortunes

A listener learns why Halliburton stock rises and falls on the price of crude.
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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.

Is Halliburton (HAL) - Get Report directly affected by the price of crude oil? I ask this because every time oil prices fall, Halliburton declines.-- Troy from California

Jim Cramer

: Halliburton, a stock that I own for my

ActionAlerts PLUS charitable trust portfolio, is very much affected by oil prices. Higher oil prices create bigger demand for Halliburton's oilfield services. However, the oil companies that employ Halliburton's services do not make their investment decisions on short-term price movements in the commodity.

The reason the stock reacts to oil prices on a daily basis is because momentum traders are very active with oil stocks, and they look for any excuse to push stocks like Halliburton up and down.

What do you mean when you say you are long a stock?-- Phil from Arizona

Jim Cramer

: When I say I am long a stock, it just means that I own it (for my charitable trust).

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by

clicking here

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