Cramer's Morning Take: Energy Stocks 4/2/24

Jim Cramer (0:02)

I'm Jim Cramer, and you're about to hear a sample taken directly from today's CNBC Investing Club morning meeting. We've been saying it's gonna happen. We have been raising cash. We knew that the market was overbought. We communicated to you that we didn't think it was right to commit new positions and new money.

And Jeff, sadly, that is what happens, but we should all expect sell-offs after a bountiful period that started at the end of October.

Jeff Marks (0:28)

Yeah, and this came up as a question last Wednesday on our monthly call. You talked about it Wednesday night on Mad Money as well, that it's typical for the market to have pullbacks of call it 5% multiple times a year. Now, I don't know if this is...

Jim Cramer (0:43)

Remember, we had those numbers?

Jeff Marks (0:44)

Yeah.

Jim Cramer (0:44)

It should happen.

Jeff Marks (0:45)

Right, and I don't know if this is gonna transpire into a 5% pullback. I'm just talking that it's plausible, it happens, it feels horrible as you go through them, but it can turn out to be nice buying opportunities. So, as you pointed out, we have raised some cash. Yesterday we made some big sales, Disney, Alphabet.

So we're just being a little bit patient here. Right.

Jim Cramer (1:05)

I mean, I told Jeff this morning, just to give you a little color, I said, you know what? If Best Buy comes in here, that would be a natural for us to buy.

So it's not like we're just ignoring this so often, looking at the bargains, not looking at bargain hunting. We are directly looking at bargains, but we also know that we've hardly been down. So it's not like this is the moment where we have to act and we're not really oversold at all.

Jeff Marks (1:28)

No, no, not quite. We did move a little bit over out of overbought territory yesterday, but I think what's hitting the market here, you have pressure from rates, right? You have the 10-year yield, highest level since November, and that's when the rally really started to take off last October, last November, and you have oil as well back to its highest level since October.

Jim Cramer (1:51)

But Coterra are not there, and Coterra should be participating. I know that they pivoted away from natural gas toward oil. CTRA is the right stock to own here. It's not even up, and Pioneer is up big, and Exxon is up big.

This company is the one to own.

Jeff Marks (2:06)

Well, it was a good call by them to make that shift, oil a lot more economical at these prices versus natural gas, which there will be a time again once after everyone pulls back spending and prices.

Jim Cramer (2:17)

Right now, it's minus 50 cents in Waha, which is the western part, so you know there's too much natural gas, not enough takeout.

Jeff Marks (2:23)

Yeah.

Jim Cramer (2:24)

You can't get, there's not enough pipe from west to east.

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