2 takeaways from our daily meeting: Selling in an overbought market, updates on 3 holdings
Every weekday the CNBC Investing Club with Jim Cramer holds a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Thursday’s key moments. It’s not too late to sell Quick mentions: QCOM, COST, HUM 1. It’s not too late to sell Stocks fell on Thursday, continuing Wednesday’s losses after the Federal Reserve reaffirmed a hawkish stance against inflation. The S & P 500 Short Range Oscillator remains overbought at 6.26%, meaning it’s not too late for investors to do some selling. We are still searching for opportunities, and are reiterating that the Dow Jones Industrial Average is where the strength is, while investors should steer clear of weaker stocks in the tech-heavy Nasdaq Composite. Unsure about selling a stock? One trick: Imagine a friend sells one of your stocks without your knowledge. If you’re upset about it, don’t sell. “But if you’re relieved, you should sell.” 2. Quick mentions: QCOM, COST, HUM Qualcomm (QCOM) matched Wall Street’s expectations in fiscal fourth-quarter results reported after the bell on Wednesday, with an inventory glut weighing down the company’s guidance and stock. Shares of QCOM are down more than 7% since the release. We are undecided on what to do with the stock, since it is so inexpensive, but the lower guidance indicates things could get worse. Costco (COST) reported October sales of $17.73 billion , up 7.7% from the year before. We still like the stock as a defensive name, especially because we believe customers are shopping at Costco to help lower their bills while inflation persists. We are also keeping an eye on whether the company increases its membership fee. Humana (HUM) on Thursday announced a $1 billion accelerated stock repurchase agreement. This comes after the company reported solid earnings for its latest quarter on Wednesday. Jim said that Humana is a stock that’s “created for this moment” – this moment being a time when persistent inflation, the Fed’s interest rate hikes and foreign exchange headwinds are pummeling tech and chip names. (Jim Cramer’s Charitable Trust is long HUM, COST, QCOM. 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.
