We’re making good on an oil stock trim. The reasoning behind the sale is two-fold
Shortly after the opening bell, we’ll be selling 200 shares of Halliburton (HAL), at roughly $37.57 apiece. Following the trade, Jim Cramer’s Charitable Trust will own 1,600 shares of HAL, decreasing its weighting in the portfolio to 2.11%, from 2.37%. Our three energy positions — oilfield services giant Halliburton as well as oil and natural gas producers Pioneer Natural Resources (PXD) and Coterra Energy (CTRA) — have been battles this year. However, the energy trade has had a resurgence of late. Since the start of July, Halliburton has rallied nearly 14.5% as of Thursday’s close, flipping our position from a loss to a hard-fought gain. We debated selling some the other day on our Monthly Meeting — and after further review, we will make that sale to protect some gains in the portfolio. HAL YTD mountain Halliburton YTD performance This trim also comes at a time when the market has increasingly become overbought, according to the S & P Oscillator . Following Thursday’s rally that pushed the week-to-date gains in the S & P 500 to roughly 2.5%, the Oscillator finished the day with a reading of 5.74%. Anything above 4% means the market is overbought, which we interpret as the market is due for a pause or rest. But anytime the reading exceeds 5%, that’s a sign for us that some froth has returned and it is prudent to make some sales. Though an overbought condition does not preclude the market from going higher — to us, it serves as a reminder that a lot of stocks have had a great run. We see nothing wrong with taking a little off into the rally. We realize a small gain of about 2% on stock purchased in March 2022. (Jim Cramer’s Charitable Trust is long HAL, PXD, CTRA. See here for a full list of the stocks.) Every time we mention the Oscillator, we’re flooded with requests from Club members: “How can we access?” Well, we went directly to the source, our partners at MarketEdge, the data provider that publishes the Oscillator. We’re excited to share that Club members can now get an exclusive discount for this helpful tool. Click here . 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.
