Every weekday, Jim Cramer’s CNBC Investment Club releases the Homestretch, a practical afternoon update to coincide with the last hour of trading on Wall Street. Market Rotation: The Dow was a big winner on Monday, with its first close above $44,000. However, the pressure on the S&P 500 and Nasdaq was exacerbated by the massive post-election move, as mega-cap tech companies such as Apple, Amazon, Nvidia, Microsoft and Meta Platforms, the club’s namesake, were a source of funding for acquisitions of the group. It reveals that rotation is happening behind the scenes. They are thought to be the bigger beneficiaries of the pro-business growth and deregulation policies expected from the incoming Donald Trump administration. Like last week, Monday saw the financial world and industry jump as technology lags. Club banks Morgan Stanley and Wells Fargo were on track to post record trading volumes. The same is true for portfolio industries Eaton and Dover. If the rally continues, the club that owns Honeywell will close at a 52-week high. One of our newest positions, BlackRock, is also hitting new all-time highs, and its Bitcoin ETF has seen significant inflows over the past week following President-elect Trump’s pro-crypto comments. Are more highs in store? With the S&P 500 index hovering near all-time highs, hovering around 6,000, one Wall Street firm has revised its year-end S&P 500 price target in hopes of further gains by the end of the year. Mr. Oppenheimer kept his earnings forecast unchanged, but raised his forecast to $6,200 from $5,900. Further gains could continue as seasonality turns positive towards the end of the year. But the market will have to contend with data that suggests it is moving too quickly in the short term. We use the S&P 500 Short Range Oscillator to guide us when the market is overbought or oversold. At the time of Friday’s rally, momentum indicators had the market moving toward overbought territory. In an overbought market, our discipline should allow us to consider some degree of strengthening the sell. We trimmed Honeywell three times last week ahead of the Oscillator. Morgan Stanley and Wells Fargo also booked profits. Next up, Home Depot will report its quarterly results before the opening bell on Tuesday. Same-store sales are expected to decline 3.1%, according to FactSet, and adjusted earnings per share are expected to be $3.64, according to LSEG. For Club Holdings to return same-store sales to positive territory, mortgage rates will likely need to fall below 6%, so until then, expect to hear about pent-up demand in the home improvement space. Ru. Other companies scheduled to report Tuesday include Shopify, Tyson Foods and AstraZeneca. Club name Disney will report its financial results before the start of trading on Thursday. (See here for a complete list of Jim Cramer Charitable Trust stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
Every weekday, Jim Cramer’s CNBC Investment Club releases the Homestretch, a practical afternoon update to coincide with the last hour of trading on Wall Street.
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