Stop Trading!: Apple Is 'on Fire'

When Schlumberger management’s negative outlook for oil can’t hurt even its own stock, Wall Street might assume the worst is over. But Cramer called the bottom in crude some time ago, he told viewers during Friday’s Mad Money.

There seemed to be a bit of an investor freak out when oil dropped to the low $30s, but a rebound was inevitable given that Schlumberger said all the cheap reserves had been found. If demand stays the same, but the supply shrinks, then econ 101 dictates an increase in price.

Oil’s up $2.39 to $46.06 Friday, and the rest of the oil stocks, SLB included, were up as well. Still, this sector’s earnings aren’t there, Cramer said, so he can’t give the buy call right now. The group’s trading at about six or seven times earnings, and he expects only one more point in upside on that multiple.

Technology stocks were also strong today. Google is a Cramer favorite. He said that if advertising bottoms, “this stock is going to go up very, very big.” Yahoo!’s a takeover play, but without strong underlying business fundamentals, Cramer won’t recommend it. Apple, though, is “on fire,” and Cramer doesn't think the company’s future is wholly dependent on Steve Jobs steering the ship.

Watch the video for Cramer’s option calls on Goldman Sachs and Citigroup. And be sure to watch CNBC’s new show, Options Action, Friday night at 11 PM ET.

Cramer's charitable trust owns Goldman Sachs.

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