Why Jim Cramer Has Oil on His Mind During Market Volatility

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There's been a lot of market volatility. 

Friday saw the major indices swing from positive to negative.

So, why is Cramer paying attention to oil?

Watch the full video above for more.

Video Transcript:

Katherine Ross:
So Jim, what's top of mind for you this morning?

Jim Cramer:
Oil. When the futures were up huge, oil was up a couple of bucks and I think people have to realize what's the cart and what's the horse. Now, this is a very machine driven algorithmic market because the individuals have really defaulted to being in the S&P, and there's no new money coming in the market. So the trader at the margin, so to speak, of using economics is keying off of something. What they're keying off of is oil.

Jim Cramer:
So if oil had stayed up two bucks, we'd be up about 400, 500 points. Now, someone might say, well that's just fanciful and stupid. I've always contended that it doesn't matter what you think is rational, it matters what the machines think is rational. So you may think the machines are irrational, as I do. What the hell oil, I mean, come on, because that's 300 billion in high yield debt that'd be in trouble versus all the other things that are out there. But when oil reversed, our futures headed right down. So just be aware that you may not think that's top of mind. You're worried about the long lines at hospitals, you're worried about people, workers not being paid, but the machines, the guys who are at the margin trading, care about oil. And when oil went down, they freaked out and sold stocks.