Home Blockchain Stick with high quality stocks as the market moves towards lower quality names, says Cramer

Stick with high quality stocks as the market moves towards lower quality names, says Cramer

by Joseph Mack

CNBC Investing Club with Jim Cramer: Last Hour of Trading

Market Trends

Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch audio feature in time for the last hour of trading on Wall Street. On a recent edition, Cramer noted that the S & P 500 was facing major profit-taking in this year’s leaders and mega cap tech darlings. The market was experiencing a rotation, with money moving out of the Magnificent 7 and into small caps and lower quality companies with weak balance sheets that had been struggling due to a tough macroeconomic backdrop.

Investor Strategy

Cramer advised investors not to chase lower quality stocks and instead focus on buying high-quality companies when they are on sale. He emphasized that chasing the bad is not a great long-term strategy, and recommended looking for opportunities in strong, high-quality companies that are experiencing a dip in their stock prices.

Stock Movement

On the downside, major companies like Microsoft, Meta Platforms, Alphabet, and Palo Alto Networks were falling, as they were coming off of their 52-week highs. However, shares of Estee Lauder were trading 5.8% higher, with Jim Cramer commenting on the sudden interest in the company despite its recent struggles. He also mentioned the rally in Foot Locker, noting that the sneaker retailer didn’t cut guidance when it reported, which was a positive sign.

Trade Alerts and Strategy

Subscribers to the CNBC Investing Club receive a trade alert before Jim Cramer makes a trade. Cramer waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Cramer has discussed a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade.


It’s important to note that the information provided in connection with the Investing Club is subject to terms and conditions, privacy policy, and a disclaimer. The club does not create a fiduciary obligation or duty, and no specific outcome or profit is guaranteed.

Overall, the last hour of trading on Wall Street was characterized by major shifts in the market, with investors facing challenges and opportunities in various stocks. Jim Cramer’s advice and trade alerts provide valuable insights for subscribers looking to navigate the complexities of the market.

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