We’re buying more of a high-quality stock hit hard in Thursday’s market selloff
We purchase 50 shares of Corning stock at approximately $78 each. Following Thursday’s trading, Jim Cramer’s Charitable Trust will own 650 GLW shares, increasing its weighting from 1.3% to 1.4%. We’re making a small buy into Thursday’s market sell-off. It wasn’t always a hard day. Shares are off to a strong start in response to Nvidia’s much better-than-expected quarter and outlook. All 11 sectors were positive early in the session. But stocks fell by the day, led by companies tied to data center spending. According to the S&P Short Range Oscillator, there may be a positive development in the decline; Finally, the market may be oversold. The oscillator closed Wednesday at minus 2.77%, more than half the threshold required to officially signal oversold. We suspect Thursday’s bounce back is strong enough to get him there. A reading of minus 4% or below means the market is oversold for the first time since April 16. GLW YTD mountain Corning YTD Oversold does not mean buy and the bottom is here. We are preserving cash in case the selling continues in the coming days and weeks. But our discipline is to always look for high-quality companies to buy when the market is oversold, so we’re holding our nose and nibbling on shares of Corning, a leader in fiber optic cables, for this weakness. (Jim Cramer’s Charitable Trust is long GLW. See here for a full list of stocks.) 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 would wait 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.
