We’re selling 20 shares of Goldman Sachs at roughly $717. Following Monday’s trade, Jim Cramer’s Charitable Trust will own 220 shares of GS, decreasing its weighting to about 4.35% from about 4.75%. We are scrutinizing the portfolio, reviewing every position to determine if we are being too greedy following the recent strength in the broader stock market. After last Thursday’s rally, the S & P Short Range Oscillator, a technical tool that measures the buying and selling pressure in the market, increased to 8.25%. This signifies a highly overbought market. For reference, anything above 4% indicates the market is overbought and could be due for a pullback or a pause to consolidate its recent gains. When the Oscillator is this elevated, it serves as a wake-up call for us to raise a little bit of extra cash and take some profits. GS YTD mountain Goldman Sachs YTD That brings us to Goldman Sachs. The stock has been on a tear and is the third-best-performing stock in the S & P 500 Financials sector this year, with a gain of about 26%. Thanks to this outperformance and our repeated buying in March when the stock fell below $600 per share, our GS position has ballooned to nearly 5% of the portfolio. While we remain bullish on Goldman’s long-term growth prospects and believe mergers and acquisitions (M & A) and initial public offerings (IPOs) are finally coming back, we are downgrading the stock to our 2 rating to account for its recent move. From this sale, we will realize a strong gain of about 28% shares purchased in December 2024. (Jim Cramer’s Charitable Trust is long GS. 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.
We’re booking profits in a top-performing bank stock in an extremely overbought market
