4 takeaways from the Investing Club’s ‘Morning Meeting’ on Tuesday

Every weekday the CNBC Investing Club with Jim Cramer holds a “Morning Meeting” livestream at 10:20 am ET. Here’s a recap of Tuesday’s key moments: Oscillator says market still oversold Our trades on DVN and CRM Quick mentions: HON and LLY Watching these bullpen stocks 1. Oscillator says market still oversold Stocks were in the red and the green Tuesday after a trading break on labor day Bond yields rose after August ISM data was stronger than expected. Investors are looking ahead to the Federal Reserve’s meeting later this month and wondering whether its streak of aggressive interest rate increases to fight inflation will continue. While mindful of the market’s back-and-forth trend Tuesday, our trusted S&P 500 Short Range Oscillator is still in very oversold territory, suggesting now is not an optimal time to do much selling. 2. Our trades on DVN and CRM We sold 100 shares of recently rallying Devon Energy (DVN) and bought 50 shares of beaten-up Salesforce (CRM) on Tuesday morning. Following a strong Friday, we trimmed DVN in our continued effort to reduce our exposure to energy on strength. OPEC+ agreed Monday to cut production targets by about 100,000 barrels per day from October. We’re using the cash from that sale to buy shares of CRM ahead of its Dreamforce conference later this month. Since the company’s most recent quarter, which we viewed as solid, the stock has sunk. We like it long-term, so we added on that weakness. 3. Quick mentions: HON and LLY Deutsche Bank named Honeywell (HON) as a top pick for 2023 in a note on Tuesday. The company cited a preference for companies with late-cycle end market exposure, including aerospace and defense, oil and gas and non-residential construction – industries that HON has businesses in. While we have this stock rated with a 2 since we trimmed our position in late March, we are interested in buying back some shares. BMO raised its price target on Club holding Eli Lilly (LLY) to $396 per share from $369, spurred by the firm’s new type-2 diabetes drug being approved to treat obesity, something we’re also incredibly bullish on . It’s also worth noting Biogen (BIIB) is going to announce top-line data on a Phase 3 study in Alzheimer’s soon. If the data is promising, it’ll reflect well on LLY’s pending treatment. If Biogen data isn’t great, LLY stock could get hit. In that case, we’d consider adding to our Lilly position because we think Lilly’s efforts in Alzheimer’s are superior. 4. Watching these bullpen stocks Some of our Bullpen names that we’re keeping tabs on for buying opportunities are Palo Alto Networks (PANW), PepsiCo (PEP) and Estee Lauder (EL). The Bullpen is our watch list. But there’s no guarantee we will add any of them to the portfolio. We don’t have plans, for now, to add to the portfolio any Barrick Gold (GOLD), which is also in the Bullpen. Barrick has dropped 21% year to date. While Jim’s a fan of having gold as a small position in a portfolio as an inflation hedge, we plan to take a closer look to see if Barrick should remain in the Bullpen. (Jim Cramer’s Charitable Trust is long DVN, HON, CRM. 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.