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, he believes that there are some promising signs.
went up despite a bad quarter, and
National Oilwell Varco
, 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.
Getting Behind the Dow
There is a "ridiculous amount" of skepticism surrounding the
new high, but Cramer, who used to be "a long-standing critic" of the Dow, believes that over the last decade, the index's changes have "done much to capture the real economy and make it very representative."
It has the most important barometers of the retail, pharma, financial, industrial and technology sectors. It is underrepresented in oil, but this is because there was "a big run in petroleum," Cramer said.
"The ramp in the Dow is for real," he said. "It says the rest of the market is going higher, and you should be in stocks."
is a stock which fluctuates backward and forward and has "no real progress," said Cramer.
But on Tuesday, there was "an inkling" that the company is going to come out of its range to move to the upside.
Toyota reported sales up 25% in a month, whereas other car companies were "frantically trying to cut back," he said. Although Toyota is not cheap and "has its own periodic quality problems," it has the right cars.
While companies such as
are "losing money in America, Toyota is making money," Cramer said.
Toyota is not a speculative stock, but a "great company and a great stock," he said, adding that he believes that it's going to take out its high by the end of the year.
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
, he said.
Despite reporting "so-so numbers" Wednesday 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."
is cheap, and I would be a buyer of it," said Cramer.
When a caller asked about
, Cramer said there is only one company that he wants to own in this space and that's
Although there are a lot of stories that steel is going down, you can't lump all steel together, he said.
"You can still own Allegheny," Cramer told the caller. "It is now back to a level that makes sense to me."
Responding to his next caller, Cramer said he believes that there is upside to buying
and suggested buying it "aggressively."
On the other hand, he was not a big fan of
, when a caller mentioned it.
"I would buy it if I had to buy a newspaper stock -- and if you put a gun to my head," Cramer said.
Cramer said he does not like this space and couldn't recommend getting into it.
is up three points since CEO Julian Day joined the company, Cramer said, responding to his next caller.
But Cramer said he would rather see the caller buy 10 shares of
, a stock he owns for his charitable trust,
Action Alerts PLUS, than 100 shares of RadioShack.
World Wrestling Entertainment
is a stock Cramer told a caller he likes very much.
"This is a terrific company," he said. "I think the stock is going higher."
At the time of publication, Cramer was long Sears Holdings.
Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, 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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