We are selling 60 shares of Stanley Black & Decker at roughly $90.01 each. Following the trade, Jim Cramer’s Charitable Trust will own 890 shares of SWK, decreasing its weighting to 2.37% from 2.50%. Much like we took advantage of Tuesday’s weakness in tech stocks to buy some Advanced Micro Devices , we’re using this rotation into Federal Reserve rate cut plays to lighten up on some Stanley Black & Decker. After all, the S & P Short Range Oscillator is overbought, so we don’t want to put too much new money to work. We are investors — not traders — but if we didn’t add to our Stanley Black & Decker position into weakness in May, June and, most recently, two weeks ago at $70 per share, then we would not be making this sale. Those buys were made when the average stock was beaten up due to higher interest rates. For that reason, it’s only natural to let some stock go after a huge move lower in rates over the past week. In the month of July overall, the stock is up more than 12% compared with a roughly 3.7% gain for the S & P 500. We’re moving our rating to a 2 given the recent rally, but still think there are more long-term gains ahead as our rate cut thesis plays out . We’ll realize a small gain of less than 1% on stock purchased in June 2023. (Jim Cramer’s Charitable Trust is long SWK. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Read the full article here
