This article originally appeared on Jan. 27, 2014, on RealMoney.com. To read more content like this plus see inside Jim Cramer's multimillion-dollar portfolio for FREE... Click Here NOW.
For the last several columns, I have been warning about a tsunami of negatives that drove me to recommend cash and light trades. But now that much of the storm has hit the markets -- particularly in the exploration-and-production (E&P) sector where we've enjoyed good results in the past -- it's time to find some stocks to buy, because they are emerging fast.
I have felt that 2014 had borrowed much of its gains from 2013 in January. Chinese and other emerging market data might have been the catalyst, but I believe the 550-point drop of the Dow was on its way in any case. It's something I had been patiently waiting for since mid-December.
On top of this, some negative interim calls and some very bad reports of fourth-quarter earnings in domestic E&P companies have helped to make this sector some of the worst of the worst: horrendous production caused by the storms in West Texas in the last quarter of 2013 have pummeled Permian stars Cimarex (XEC) of the sector. Others, such as Noble (NBL), Anadarko (APC) and Apache (APA), have fared even worse.
That's good -- that shows the value again has begun to build in these shares, especially as major sector positives are gaining ground at the exact same time these issues are showing weakness.