We're using Friday's market bounce to trim a less-favored Club holding

Published Fri, Jun 24 202211:41 AM EDT

We're selling 100 shares of Wynn Resorts (WYNN) at roughly $56.53 each. Following the trades, the portfolio will own 200 shares of WYNN — decreasing its weighting to 0.41% from 0.61%. We are getting a nice rally in the market Friday with strength nearly all across the board. Once again the S & P Oscillator has shown how it works whenever it reaches a highly oversold level of minus 10%, as it did at the end of last week. Given how low we took our cash position down when the Oscillator reached its most oversold level, we think today's move higher in the market represents a solid opportunity to trim a less-favored position into strength. (For some background, read up on Cramer’s favorite market indicator and how we incorporate it into trading decisions. ) Due to the uncertainty around when China will finally move past its ill-advised zero-Covid policy, we view today's 8% move in WYNN as an opportunity to lighten up on our position. This will also raise some cash so that we have the flexibility to high-grade the portfolio into more profitable, higher-quality companies that return money to shareholders and have better balance sheets. A great example of how we high-grade the portfolio happened last Tuesday, we trimmed Wynn to buy shares of Procter & Gamble below $135 per share . We understand that by selling here we are running the risk of parting with a stock that would materially benefit from a China reopening rebound. In fact, Wynn might stand to benefit the most given how much the stock has fallen in the past year. This is in the back of our minds, explaining why we are slowly trimming this "tag end" (last bit) of our position. However, we can't be afraid to take this tough loss of about 45% because in the event of a policy shift, we believe we would capture plenty of upside from so many other parts of our diversified portfolio, as we explained earlier this week . (Jim Cramer's Charitable Trust is long WYNN. 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.

People use their smartphones to take photographs outside The Wynn Macau casino resort, operated by Wynn Resorts Ltd., in Macao, China, on Tuesday, Jan. 30, 2018.

Billy H.C. Kwok | Bloomberg | Getty Images