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There was a "prolonging of the agony in the oil patch" today as the sector experienced a bounce, sucked people in and then went back down, Jim Cramer said on his

"RealMoney" radio show Wednesday.

A lot of people believe that these oil stocks can't continue to decline, but this is untrue, Cramer said. However, there are some promising signs, he said.

Valero Energy

(VLO) - Get Valero Energy Corporation Report

went up despite a bad quarter, and

National Oilwell Varco

(NOV) - Get National Oilwell Varco, Inc. (NOV) Report

, which had a downgrade, was momentarily up but went down again, Cramer said.

"Maybe you can start nibbling," he said. "But these are just symptoms of a bottom and not the real thing. Oil's still going down."

Cramer said he still cannot have people in this space as "there is no bottom until massive capitulation occurs." He doesn't trust the move oils saw today.

In the meantime, oil stocks can pay dividends while investors wait for a turn, making the ride less painful," he said.

Cramer said he is seeing a new pattern where companies that are heavily shorted are starting to perform better when they report in-line numbers. Two companies that demonstrate this are

Shaw Group


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Panera Bread


, he said.

Despite reporting "so-so numbers" today and "opening down and flat," the stocks are "flying," Cramer said.

"I believe that's because the short positions in these stocks are gigantic -- particularly when matched with the float," he said. "These stocks are so hated and so gamed to the downside that they are acting as if they reported upside surprises."

To see the most recent edition of The RealMoney Radio Recap in its entirety, please click here. This recap is published every day around 3 p.m. ET.

Jim Cramer is a director and co-founder of He contributes daily market commentary for's sites and serves as an adviser to the company's CEO. Outside contributing columnists for and, 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

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