Retail appears to be the biggest benefactor of oil’s downward slide Friday, Cramer said.
That’s because as gas prices drop, people will start spending money in retail and in restaurants. The “Mad Money” host said commodity related retail plays like Phillips-Van Heusen , VF Corp, Lululemon Athletica, Polo Ralph Lauren and Costco are all benefiting from the drop in oil prices.
Commodities, on the other hand, are feeling the pain, he said.
“Everybody has decided that any consumer of commodities is worth owning,” Cramer noted, “and any player in the commodities space is worth shorting.”
It doesn’t matter if companies reiterate that things are good, he said, or that the actual underlying commodities have not come down. People are still betting there will commodities collapse.
“This market has been very forward thinking,” he said. “If they’re all betting that way, I want to short cotton.”
The ethanolmarket also got hit, Cramer said, thanks to a U.S. Senate vote Thursday to wipe out billions of dollars in support for the ethanol industry. Cramer believes investors are now thinking if ethanol subsidies can go, “there is no sacred cow.”
“So any company that needs a government subsidy or is getting one, people are selling or shorting.”
In other market news, Cramer said Research in Motion is a value trap, and warned traders to stay away.
The maker of Blackberry reported a sharp drop in quarterly profit and slashed its full year outlook on Thursday, and its stocks quickly nose dived.
Cramer believes RIM is underinvested, just like Nokia and Motorola .
Call Cramer: 1-800-743-CNBC
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website? firstname.lastname@example.org