Every weekday, CNBC Investing Club with Jim Cramer publishes Homestretch – an actionable afternoon update just in time for the final hour of trading on Wall Street. Market Rotation: The Dow was the big winner on Monday, aiming for its first close above 44,000. However, the pressure on the S&P 500 and the Nasdaq suggests that there is a lot of rotation taking place beneath the surface after the election, as mega-tech names such as club names Apple, Amazon, Nvidia, Microsoft and Meta Platforms provide a source of cash for the Buying corporations are seen as bigger beneficiaries of the expected pro-business growth and deregulation policies of the new Donald Trump administration. Similar to last week, financial stocks and industries were on the rise on Monday as technology lagged. The club banks Morgan Stanley and Wells Fargo were on their way to record deals. The same applies to the portfolio industrial stocks Eaton and Dover. If gains continue, the club holding Honeywell will close at a 52-week high. BlackRock, one of our newest holdings, also hit a new all-time high, and the company's Bitcoin ETF saw large inflows last week due to President-elect Trump's pro-crypto rhetoric. More heights ahead? With the S&P 500 trading at record highs around 6,000, one Wall Street firm revised its year-end price target for the S&P 500, expecting more gains before the end of the year. Oppenheimer increased its forecast from 5,900 to 6,200 with an unchanged profit estimate. Due to the positive seasonality until the end of the year, further increases could follow. However, the market will have to contend with data that suggests it has moved too far and too fast in a short period of time. We use the S&P 500 Short Range Oscillator as a guide to when the market is overbought or oversold. As of Friday’s rally, the market was approaching overbought territory based on the momentum indicator. In overbought markets, our discipline requires us to consider selling towards strength. We overhauled the oscillator last week and trimmed Honeywell three times. We also took profits on Morgan Stanley and Wells Fargo. Next up: Home Depot reports quarterly earnings before the opening bell on Tuesday. Same-store sales are expected to have fallen 3.1%, according to FactSet, with adjusted earnings per share of $3.64, according to LSEG. Club Holding will likely need to see mortgage rates fall to 6% or less to bring its same-store sales back into positive territory. So, until then, we expect to hear about the pent-up demand in the home improvement category. Other companies due to report on Tuesday include Shopify, Tyson Foods and AstraZeneca. The club name Disney presents its winnings ahead of Thursday's opening. (A complete list of Jim Cramer's Charitable Trust stocks can be found here.) As a subscriber to 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 foundation's portfolio. If Jim discussed a stock on CNBC television, he waits 72 hours after the trade alert is issued before executing the trade. THE INVESTING CLUB INFORMATION SET FORTH ABOVE IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, ALONG WITH OUR DISCLAIMER. THERE ARE NO fiduciary duty or duty IN RECEIVING YOUR INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR PROFITS ARE GUARANTEED.
Every weekday, CNBC Investing Club with Jim Cramer publishes Homestretch – an actionable afternoon update just in time for the final hour of trading on Wall Street.