Jim Cramer: We can not trade as if we were the "old" United States

How on earth can the market fail to collapse after a drone raid has destroyed half of Saudi oil production? How did we get so many stocks that bounced back on the news?

Simple: we now have a lot of companies that are doing better with the increase in oil, and companies that are doing well when the economy slows down. We are not the old United States and we can not trade like ourselves.

First, let's understand, it seems that the Iranians have launched drone attacks that have destroyed a huge part of the infrastructure of the world's largest oil exporter.

This pushed up the price of oil by more than 10%, the biggest gain in 11 years. The higher the oil, the more gasoline is important, which means less money to spend on retail. So we sold a lot of things in this area. Made of life, they had a gigantic race.

Remember last week when I told you that the exclusive S & P oscillator was too high at over 8, that I did not know what could knock the market down, but that it was extremely vulnerable because he was too overbought?

This oil shock is the kind of incident occurring on the ground that can occur and that has far greater repercussions than would otherwise be the case, which is why retailers are crushed.

The same goes for large packaged product companies: Clorox (CLX), Proctor and Gamble (PG) and Estee Lauder (EL). They are considered highly plastic-dependent companies, which soars when oil rises, as well as freight, which was relatively moderate this year.

Naturally, the airlines have also been affected by the huge losses of American Airlines (AAL), United (UAL) and Delta (DAL).

But the truth is that once, this market would have collapsed. You could not let the biggest oil exporter see half of its production put out of service, without thinking of an outbreak of inflation, gas pipelines and a drop in consumer spending.

Now, however, we went from five million barrels a day nine years ago to 12 million barrels, while developing policies that consume far less energy than before. In addition, Scott Sheffield, CEO of Pioneer Natural Resources (PXD) and recognized dean of the oil sector, thinks it will not take long to produce five million more barrels a day.

It is almost inconceivable that this can be the case. And we do not appreciate enough until days like today. It's a real demonstration of resilience because we control our destiny a lot more and have achieved continental self-sufficiency.

This oil rally can give our producers a much needed increase in profits that will allow them to reduce their debt and better control their finances. It's great for them because they want to be more disciplined than before.

In the end, however, they are the seeds of their own destructive prices, because neither this country nor the rest of the world can handle all the oil we can put on line.

In fact, our production contains only three elements: First, we do not have enough pipelines in the Permian Basin to bring all the oil to the market, in part because few people expected us to have as much oil; secondly, we do not have enough large ports to accommodate the huge tankers capable of holding two million barrels; and third, until the recent recession, the government did not allow excessive flaring or burning of the by-product of natural gas supplied with the oil. The price of natural gas up until Monday's outbreak is practically zero, because we do not have enough pipelines or we do not demand that we do anything. I know these are all high quality problems, but they are nevertheless problems.

I do not expect a restorative reprieve, even if some oil companies take advantage of the pro-torch position announced by the president. Most major oil companies, however, are reluctant to adopt the new rules because they do not want to ruin the reputation of natural gas as a cleaner fuel than coal.

All the oils were so rich that they supported the S & P 500, and the Exxon (XON) and Chevron (CVX) rally far surpassed the Dow Jones Industrial Average. My charitable trust was a big seller of oils, however, because I do not think the move is sustainable.

However, let us consider for a moment the difficult point in which our commercial enemy, the People's Republic, finds itself.

China is fortunate to own ingenious citizens, working incredibly hard and a managed economy that can produce far more goods than a democracy could be capable of. At least, that's rap, and I can not say it's unjustified because the People's Republic of China has created 400 million jobs in a very short time.

But it's a very shy country in terms of natural resources, which kind of reminds me of the old United States, and for them any disruption is bad news. Oil is a strange product. China has imposed tariffs on US oil, but it is believed that the country uses about one million barrels of oil per day from the United States. This Saudi story adds to the thesis of the slowdown of an economy that we once thought to be safe from any growing decline, but if there was one, its resolution would not diminish .

I wonder if that is always the case.

It's not just the oils that have climbed. Companies that do not need stronger economic growth have rallied together, such as Cloud Cloud, ServiceNow (NOW), Workday (WDAY), VMware (WMW) and Adobe (ADBE). It's an incredible sign of resilience, again, unthinkable it's not so long ago. But this is part of this rotating market as the money comes out of stocks of consumer goods packaged directly into stocks of companies unaffected by oil.

It is quite possible that we do not take this news into account. The next thing you hear is that the Saudi oil facilities are back in service. He will not be able to take advantage of his own weaknesses: too much of his oil is offline.

But it is also possible that we have a whole new world of worry: these ten drones used to break the infrastructure demonstrate a new vulnerability for the Saudis and all countries. You need to have a widely extended radar, which is great for Lockheed Martin (LMT), Raytheon (RTN) and L3Harris (LHX). Of these, my favorite is L3Harris, the combination of L3 and Harris, but I do not like running up to seven points. I think the military side is the most worrisome, especially as the President tweeted that we are "stuck and loaded" and ready to retaliate, presumably against Iran, just when the Saudis l & # 39; send.

But who knows what it really means?

I know that the resistance of this market could melt during a strike against Tehran. But it seems to me that it is worth noting Monday's shrug and thinking about how much the day would have been worse just ten years ago.