We're making 2 small stock sales to bulk-up our cash in a market that seems ahead of itself

Published Mon, Jan 8 20248:52 AM ESTUpdated Mon, Jan 8 20248:57 AM EST

Shortly after the opening bell, we'll be selling 70 shares of DuPont (DD) at roughly $76.69 and 50 shares of TJX Companies (TJX) at $roughly $91.71. Following Monday's trades, Jim Cramer's Charitable Trust will own 800 shares of DD, decreasing its weighting to 2.03% from 2.21% and 750 shares of TJX, decreasing its weighting to 2.28% from 2.43%. We're making a couple more small sales Monday morning and raising a little extra cash as we remain concerned that the recent Federal Reserve-driven rally has moved too far too fast . The parabolic moves in the market on too-optimistic interest rate cut expectations have us patiently waiting on the sidelines for prices to come down before deploying the sizeable cash position we've built. Last week, we took a little off a handful of tech stocks that saw huge gains in 2023. DD 1Y mountain DuPont 1 year For DuPont , we still like the thesis centered on the recovery in the semiconductor and electronics industry, which is in the process of bottoming out. As demand for these products recovers and de-stocking headwinds ease, DuPont's earnings should see a substantial uplift from increases in volume and margin. This keeps us positive on DuPont in the long term, however, we are making a small trim Monday just in case the recovery timeline gets pushed out another quarter due to sluggishness in China. That's the theme that caused management to guide down back in November. With the stock up about 15% since that weaker outlook, we're downgrading our rating to a 2 and will become more bullish again as we gain more confidence that China headwinds are behind DuPont. TJX 1Y mountain TJX Companies 1 year For TJX , the company behind off-price retailers T.J. Maxx, Marshalls, and HomeGoods, we still think the long-term story for this off-price retailer has legs to it as it benefits from the inventory gluts of others in retail. Also, we expect market share gains will continue from conscious consumers seeking high-quality goods at reasonable prices. However, we are making a small sale and downgrading our rating to a 2 because the stock has rallied to new record highs and we don't want to give these gains back. On the DuPont sale, we'll realize a small loss of about 2% on stock purchased in August 2023 but on TJX we'll realize a great gain of about 42% on stock purchased in August 2022. (Jim Cramer's Charitable Trust is long DD. TJX. 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.