Every weekday, the CNBC Investing Club with Jim Cramer hosts a live “Morning Meeting” at 10:20 AM ET. Here is a recap of Tuesday’s key points: Oscillator says market is still oversold Our trades on DVN and CRM Brief mentions: HON and LLY Watching these stocks Bullpen 1. Oscillator says market is still oversold Shares were in red and green on Tuesday after the Labor Day trade break. Bond yields rose after August ISM data came in stronger than expected. Investors are looking forward to the Federal Reserve meeting later this month and are wondering if the series of aggressive interest rate hikes to fight inflation will continue. With Tuesday’s market trend in mind, our robust short-term S&P 500 oscillator is still in very oversold territory, suggesting that this is not the best time for big selling. 2. Our deals with DVN and CRM We sold 100 shares of the newly rally Devon Energy (DVN) and bought 50 shares of the battered Salesforce (CRM) on Tuesday morning. After a strong Friday, we have trimmed DVN in our ongoing effort to reduce the impact of energy on strength. On Monday, OPEC+ agreed to cut production rates by about 100,000 bpd from October. We will use the proceeds from this sale to buy CRM stock ahead of the Dreamforce conference later this month. Compared to the last quarter, which we considered stable, the company’s shares fell. We like it in the long run, which is why we added this weakness. 3. Brief Mention: HON and LLY Deutsche Bank named Honeywell (HON) their top choice for 2023 in a note on Tuesday. The company indicated that it has a preference for companies with a late-cycle end-market entry, including aerospace and defense, oil and gas, and non-residential construction, industries in which HON does business. Although we have a rating of 2 on this stock, since we cut our position at the end of March we are interested in buying back some of the shares. BMO raised its target price for Club, Eli Lilly’s (LLY) shares to $396 per share from $369, prompted by the firm’s new type 2 diabetes drug being approved for obesity, which we are also incredibly optimistic about . It’s also worth noting that Biogen (BIIB) is set to announce key data for its phase 3 Alzheimer’s study soon. If the data are promising, this will reflect well on the upcoming treatment of LLY. If Biogen’s data is not good, LLY’s stock could suffer. In this case, we would consider extending our position to Lilly because we believe that Lilly’s efforts in treating Alzheimer’s are superior to others. 4. Watching bullpen stocks Some of our bullpen names that we monitor for buying opportunities are Palo Alto Networks (PANW), PepsiCo (PEP) and Estee Lauder (EL). The bullpen is our watchlist. But there is no guarantee that we will add any of them to the portfolio. We have no plans to add any Barrick Gold (GOLD) to the portfolio, which is also in the bullpen. Barrick is down 21% since the start of the year. While Jim is a fan of having gold in a small portfolio position as an inflation hedge, we plan to take a closer look at whether Barrick should stay in the bullpen. (The Jim Cramer Charitable Foundation has long DVNs, HONs, CRMs. See the full list of stocks here.) As a CNBC Investing Club subscriber with Jim Cramer, you will be notified of the trade before Jim completes the trade. Jim waits 45 minutes after sending a trade notice before buying or selling shares in his charitable foundation’s portfolio. If Jim was talking about a stock on CNBC, he waits 72 hours after a trade alert is posted before making a trade. THE ABOVE INFORMATION ABOUT INVESTMENT CLUB IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH OUR DISCLAIMER. NO FIDUCIARY RESPONSIBILITIES OR OBLIGATIONS ARE OR ARISING IN CONNECTION WITH YOUR RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULT OR PROFIT IS GUARANTEED.
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