Every weekday, the CNBC Investing Club with Jim Cramer releases Homestretch — an actionable afternoon update, just in time for the final hour of trading on Wall Street. Market Rotation: The Dow Jones was the big winner on Monday, posting its first close above 44,000. However, the pressure on the S&P 500 and Nasdaq reveals a significant post-election rotation happening beneath the surface, as huge tech names like Apple, Amazon and Nvidia Microsoft and Meta Platforms are a source of money to buy groups seen as the biggest beneficiaries of the growth and deregulation policies expected by the incoming Donald Trump administration. Just like last week, financial and industrial stocks were soaring on Monday as technology lagged. The bank club of Morgan Stanley and Wells Fargo was on track for a record closing. The same is true of the Eaton and Dover industrial companies. If gains continue, Honeywell's Club stock will close at a 52-week high. BlackRock, one of our newest positions, also hit a new all-time high, and the company's Bitcoin ETF received a huge rush of inflows over the past week due to President-elect Trump's pro-crypto rhetoric. More highs coming? With the S&P 500 trading around record levels and around 6,000 points, a Wall Street firm revised its target for the S&P 500 price for the end of the year, anticipating further gains before the end of the year. Oppenheimer raised his forecast to 6,200 from 5,900 on unchanged earnings estimates. Further gains could follow due to positive seasonality until the end of the year. However, the market will have to deal with data that suggests it has moved too far, too fast in a short period. We use the short-term S&P 500 Index as our guide when the market is overbought or oversold. As of Friday's rally, the Momentum indicator has the market near overbought territory. In overbought markets, our discipline dictates that we consider some selling as strength. We got ahead of the oscillator last week and shorted Honeywell three times. We also had gains at Morgan Stanley and Wells Fargo. Next: Home Depot reports quarterly earnings before the opening bell on Tuesday. Same-store sales are expected to decline 3.1%, according to FactSet, with adjusted earnings per share of $3.64, according to LSEG. Club Holding will likely need mortgage rates to fall to 6% or lower to get same-store sales back into positive territory, so until then we expect to hear about 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 opening. (See here for a complete list of stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you'll receive a trade alert before Jim takes a trade. Jim waits 45 minutes after a trade alert is sent before buying or selling a stock in his charitable fund's portfolio. If Jim talks about a stock on CNBC TV, he waits 72 hours after the trade alert is issued before executing the trade. The above Investment Club information is subject to our Terms and Conditions and Privacy Policy, as well as our Disclaimer. No obligation or fiduciary duty exists or is created by your receipt of any information provided in connection with the Investment Club. No specific results or profits are guaranteed.
Every weekday, the CNBC Investing Club with Jim Cramer releases Homestretch — an actionable afternoon update, just in time for the final hour of trading on Wall Street.
