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Cramer: Exploit this-rare moment for oil & retail

Jim Cramer can't believe the giant stock rotation of retail stocks occurring. He turns to his game plan to find out if it will strike back next week.

It is a very rare occasion when Jim Cramer sees to alternative worlds co-exist, and that seems to be the case with the oil and retail stocks. Typically when the price of oil goes down, retail stocks go up. However lately there has been a strange relationship between the two, as both black gold and retail have been climbing higher together.

So which one is right-is it oil or the retailers?

"I think the answer might be that both can be right as long as the price of gasoline doesn't go up that much, a likely scenario, and the retailers continue delivering good numbers, which I think they will," said the "Mad Money" host.

Recently Cramer has warmed up to buying oil stocks again, and has recommended this on "Mad Money" previously. However, until now he has not advocated to buy the master limited partnerships that are connected to oil.

Now he is on board with oil MLP's, and encourages investors to get in on the oil patch. As it looks like oil has now bottomed and could be headed higher, he feels comfortable returning to the group. His top three favorites are Magellan Midstream Partners (NYSE: MMP), MarkWest (NYSE: MWE) and Enterprise Products Partners (NYSE: EPD). All three are MLPs focused on growth and have a blended yield of approximately four percent.

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Likewise, it's also time to jump in on retail! Cramer expects Costco (NASDAQ: COST) numbers will bounce back for April after it had a weak March. He also likes the turnaround for Urban Outfitters (NASDAQ: URBN), and thinks it is pretty clear that stock is doing much better. A few other faves are Lowe's (NYSE: LOW), Under Armour (NYSE: UA), Skechers (NYSE: SKX), PVH (NYSE: PVH) and VF Corp (NYSE: VFC).

The retail stock that really caught Cramer's eye though was Ulta Salon (NASDAQ: ULTA). It's got the best retail model in the business right now, and has been on an upward climb all year.

"I think we have a coexistence moment where oil and retail can both be strong, and this opportunity has to be exploited."

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