Brewing trifecta drives stocks to records — plus, the treasure hunt at TJX

Every weekday, CNBC Investment Club with Jim Cramer publishes Homestretch, an actionable afternoon update just in time for the final hour of trading on Wall Street. Market movements: Stocks started the week with an increase; Three major stock indexes (Dow, S&P 500 and Nasdaq) hit new all-time intraday highs. Easing trade tensions between the US and China are driving a big part of the market recovery after the world's two largest economies agreed on a framework for a deal to avoid tariff increases. The flurry of mergers and acquisitions in many sectors and the Federal Reserve's expected 25 basis point interest rate cut later this week have further boosted Wall Street's confidence. We balance these three bullish narratives with the fact that the S&P Short Range Oscillator is finally moving into overbought territory. Jim Cramer has been using the Oscillator for decades to help detect momentum swings in the market. In overbought markets we tend to look for things to sell and fill our cash position. We pruned Danaher early on Monday. Retail earnings: JPMorgan's department store and specialty softline retail analyst Matt Boss released his big third-quarter preview. Overall, Boss was optimistic about the category heading into earnings season. JPMorgan's proprietary Chase Credit Card data showed overall U.S. spending growth sequentially led by higher-income consumers. From a more micro perspective, Boss believes the group benefited from a strong start to August due to the Back to School season and early cold weather. Another factor working in favor of companies is conservative expectations. Last earnings season, many management teams issued more conservative advice in anticipation of a larger pullback in consumer spending. Considering that Chase card data points to an increase in spending, this slowdown is unlikely to have occurred. However, the Boss is not entirely top-down driven. He does his homework by visiting stores and meeting with management teams. It has long favored off-price retailers, with TJX standing out as a favorite. Ahead of the quarter, Boss raised his price target on TJX by $1 to $150 and maintained his overbought rating. Boss's latest fieldwork showed stores stocked heavily from major brands such as Helly Hansen, Calvin Klein, BCGB and Tommy Hilfiger. The treasure hunt experience is alive and well; Boss points out that the average TJX store items are 70% below the original price. These two points stand out because the most important thing for us as TJX shareholders is the Club's ability to supply high-quality products and sell them to customers at affordable prices. According to Boss's checks, the TJX thesis is still alive and well. For the quarter, Boss beats the Street consensus for both same-store sales growth and earnings per share. Next up: The biggest week of the third-quarter earnings season begins. After the closing bell, Nucor, Whirlpool, Amkor Technology, WM, Cadence Design Systems and NXP Semiconductors are among the companies reporting quarterly results. Our newest portfolio name is Corning, before Tuesday's launch, along with UnitedHealth, Sherwin-Williams, SoFi, PayPal, United Parcel Service, Celestica, Carrier, DR Horton, VF Corp. and reports with NextEra Energy. On the data side, the Conference Board publishes its latest data on consumer confidence. (See here for a complete list of stocks in Jim Cramer's Charitable Trust.) When you subscribe 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 trading alert before buying or selling a stock in his charitable foundation's portfolio. If Jim talked about a stock on CNBC TV, he waits 72 hours after issuing the trading alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH THE DISCLAIMERS. NO CIVIL OBLIGATIONS OR DUTIES EXIST OR SHALL BE RESULTING FROM YOUR RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULT OR PROFIT CAN BE GUARANTEED.