The Latest on Oil Stocks

Jim Cramer, on realmoney is saying that owning oil is difficult here and might lead to underperformance. "At what point do people say owning oil is just too hard. I believe that point is rapidly approaching. Despite my affinity for the group, it's just playing too much havoc with performance. I thought of that this weekend when I recognized that almost none of the stocks that Investor's Business Daily focuses on in its 100 list is still oil. The momentum is gone, courtesy of the endless backing and filling. The incredible decline in natural gas has made people feel that the whole run has been an aberration. Which is too bad, because that's just untrue. But fighting it has been way too hard. "

I actually think Cramer is correct here. As the price of oil fluctuates and doesn't go up in a straight line, most of the oil stocks have just bounced around. One day we probably will get the spike to 80 or 100 and the oil stocks will rip higher, the only problem is they may rip from 20% lower than where they are now.