Investing Club: This delivery stock rally gave us a chance to make a sale and pad our rainy day cash fund

Published Wed, Mar 2 20222:18 PM EST

We're making another move for the Charitable Trust on Wednesday. This time we are selling 50 shares of United Parcel Service (UPS) at roughly $213.07. Following the trade, we'll own 350 shares of UPS, decreasing its weighting to 1.9% from 2.16% in the Trust portfolio. After adding to some of our positions into weakness Monday ( Walmart ) and Tuesday ( Morgan Stanley and Disney ), we're pivoting to selling into strength now that the S & P 500 was rallying roughly 2% on Wednesday afternoon. We put out a trim alert on Nucor a little over one hour ago — and now we're trimming another stock, UPS, which has outperformed this year and popping higher. These two sales Wednesday will help us replenish the cash we put to work when the market was much lower. Even though we consider ourselves long-term investors and not traders, we must recognize how periods of extreme volatility, like what we are experiencing now, call for nimbler action of buying on pronounced weakness and then selling into strength. Although this UPS sale won't come at our highest price to date, which happened on Feb. 8 when we sold 125 shares at about $224, Wednesday's rally pushed the stock back to about even on the year, and that's a lot better than what can be said for the S & P 500 's roughly 8% decline. Wednesday's UPS sale will lock in a gain of about 28% on stock purchased in November 2020. (Jim Cramer's Charitable Trust is long UPS, WMT, MS and DIS. 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.

A United Parcel Service Inc. (UPS) driver delivers boxes in New York, U.S., on Tuesday, Oct. 13, 2020.

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We're making another move for the Charitable Trust on Wednesday.