Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Market rotation: The Dow was the big winner Monday, tracking for its first close above 44,000. However, the pressure on the S & P 500 and the Nasdaq reveals a big, postelection rotation happening underneath the surface as megacap tech names like Club names Apple , Amazon , Nvidia , Microsoft , and Meta Platforms were a source of funds to buy groups that are perceived to be bigger beneficiaries of the incoming Donald Trump administration’s expected pro-business growth and deregulation policies. Much like last week, financials and industries were flying Monday as technology lagged. Club banks Morgan Stanley and Wells Fargo were on track for record closes. The same goes with portfolio industrials Eaton and Dover . If gains hold, Club holding Honeywell will close at a 52-week high. BlackRock , one of our newest positions, was making a new all-time high, too, and the company’s bitcoin ETF received a major rush of inflows over the past week on President-elect Trump’s pro-crypto rhetoric. More highs ahead ? With the S & P 500 trading around record highs and hanging around 6,000, one Wall Street firm revised its year-end S & P 500 price target, expecting more gains before the end of the year. Oppenheimer raised its forecast to 6,200 from 5,900 on an unchanged earnings estimate. More gains could follow due to the positive seasonality through the end of the year. The market will, however, have to contend with data that suggests it has moved too far, too fast in a short period. We use the S & P 500 Short Range Oscillator as our guide to when the market is overbought or oversold. As of Friday’s rally, the momentum indicator put the market close to overbought territory. In overbought markets, our discipline mandates we consider some selling into strength. We got ahead of the Oscillator last week and trimmed Honeywell three times . We also took profits in Morgan Stanley and Wells Fargo. Up next: Home Depot reports quarterly earnings before Tuesday’s opening bell. Same-store sales are expected to have declined 3.1%, according to FactSet, with adjusted earnings per share of $3.64, according to LSEG. The Club holding probably needs to see mortgage rates fall to 6% or below to get its same-store sales back in positive territory, so until then we expect to hear about the pent-up demand building up in the home improvement category. Other companies scheduled to report Tuesday are Shopify , Tyson Foods , and AstraZeneca . Club name Disney delivers its earnings before Thursday’s open. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) 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.
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street.
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