We got verification of the strength of the data center theme with Oracle earnings, says Jim Cramer

Summary

• The ongoing war with Iran is creating a severe oil shock, with oil up 50% for the year and potentially heading to $120 if a ceasefire is not reached.
• The market is currently being artificially supported by the release of global strategic petroleum reserves (20 days' worth), masking the true economic danger of the conflict.
• If oil spikes to $120, passive index selling will be so aggressive that it will crush all stocks, including energy majors like Exxon and Chevron that would normally benefit from high oil prices.
• Despite the macro overhang, three distinct micro themes show fundamental strength and should be bought on war-induced pullbacks: Data Centers, Memory/Semi-Cap Equipment, and Discount Retailers.