Jim Cramer: Yellen & Oil--The World's Most Dangerous Game

JIM CRAMER: Everyday, this market seems to play 'Rock-Paper-Scissor.'...The scissors are the Federal Reserve and the rock is oil. And oil can smash anything that the Federal Reserve's scissors throws at it. So if oil goes higher like it did earlier today before pulling back in the afternoon, then Janet Yellen can yap all she wants in front of Congress about the need to raise interest rates without anyone even considering the chaos that's around the world. Yep, oil is that powerful a force. And oil has the added advantage of being dumb as a rock because when it goes higher, it's good for the whole overall market.

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Now how about the scissors of the Fed. What can they do? Whenever Janet Yellen smacks of going on autopilot, and raising rates, and tightening the money supply, she can slice through the paper of stocks in a heartbeat. We have to hang on every single word because the wrong one that she utters can just cut paper's stocks like there's no tomorrow. But don't rule out the power of paper! Of individual stocks. When we get earnings from companies like Facebook or Google, they can smother oil as long as crude isn't in total free-fall.

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That's why, in reality, it's an infantile game that proves only one thing: if you play it long enough, you're going to lose.