Oil is once again running the show for the market, even if it shouldn't be. That is why Jim Cramer took the opportunity to watch just how much it controls stocks early on Monday morning, and he was shocked at how insanely powerful it was.
When Cramer woke up in the morning oil was flat, which sent the S&P 500 futures skyrocketing. When oil broke down $1, that prompted the futures to take a nosedive. Oil roared back, and then the futures rebounded.
But does its weight really make any sense?
When Cramer drilled down, he found that only 16 states derive some income from oil and gas. Of those, only nine are truly impacted by lower oil prices that could be threatening.
The real issue with lower oil prices is all of the debt that the oil and gas companies have and what happens if they default.
"That is a real issue. Definitely. There is maybe as much as $300 billion in debt in this industry. That could be a big hit," the "Mad Money" host said.