Jim Cramer's Charitable Trust has made significant stock purchases. They are buying 50 shares of CrowdStrike at approximately $354 each and 25 shares of Home Depot at around $390. After Thursday's trades, the trust now owns 200 shares of CRWD, raising its portfolio weighting to 2% from 1.5%. It also holds 225 shares of HD, increasing its weighting to 2.5% from roughly 2.20%. With the stock market having settled after Wednesday's Fed-induced plunge, the trust is making disciplined buys based on the S & P 500 Short Range Oscillator. This oscillator indicates that the market is currently the most oversold since October 3, 2023. Back then, the market sold off due to a hot Job Openings and Labor Turnover Survey (JOLTS), causing Treasury yields to surge and concerns about the Federal Reserve raising interest rates. However, it proved to be a good time to buy as the S & P 500 was 3% higher one month later. The trust is adding to its positions in CrowdStrike and Home Depot, both high-quality companies.For CrowdStrike, shares have dropped back to where they were in late November after its third-quarter earnings report. This presents a buying opportunity as the company is a best-of-breed cybersecurity firm. The pullback allows for a deeper scale into the stock.Regarding Home Depot, the Fed's messaging of fewer than expected rate cuts next year and weak guidance from homebuilder Lennar led to a decline in housing and home improvement stocks. Despite the Fed easing, bond yields have risen, presenting challenges to the thesis. However, housing turnover is at 30-year lows, and the trust is willing to be patient, expecting 2025 to be a better year. The stock has dropped 10% from its December 6 high of $431, creating a solid entry point.Don't miss the December Monthly Meeting at noon ET to learn more about CrowdStrike, Home Depot, and the other stocks in the Club portfolio. This includes the initiation in the banking sector that was alerted earlier on Thursday morning. (Jim Cramer's Charitable Trust is long CRWD, HD. 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 he 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 he has discussed a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade.It's important to note that the above investing club information is subject to our terms and conditions, privacy policy, and disclaimer. No fiduciary obligation or duty exists by virtue of receiving this information. No specific outcome or profit is guaranteed.
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