Every weekday the CNBC Investing Club with Jim Cramer holds a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Wednesday’s key moments: Jim’s favorite indicator in oversold territory Two stocks the Club is buying Where we stand on Disney 1. Jim’s favorite indicator in oversold territory Stocks were in and out of the red Wednesday, even as the market entered the session in oversold territory, according to one of Jim Cramer’s most trusted indicators: the S & P 500 Short Range Oscillator. We pay especially close attention to the S & P Oscillator in moments of volatility, which, of course, Wall Street has plenty of right now. We explained earlier this year on how, exactly, the S & P Oscillator informs our decisions. But, in this moment when it’s flashing minus 7.06%, what’s important to know is it’s telling us the market could be positioned for a bounce. “This is really important. When we’re at minus 7% [on the S & P Oscillator] … can’t sell, no matter what,” Cramer said on Wednesday’s “Morning Meeting.” “We are looking for something to buy because when we’re at minus 7%, we have to.” 2. Two stocks the Club is buying Taking our cue from the S & P Oscillator, the Club on Wednesday is scooping up additional shares in two stocks: Nvidia (NVDA), a longtime position that’s been under duress pretty much all year, and TJX Companies (TJX), the newest stock in Cramer’s Charitable Trust. (Reminder: Cramer’s Trust is the portfolio we use for the Club.) Cramer drove home his desire to add to TJX during the “Morning Meeting.” The off-price retailer remains one of the smallest weightings in the Trust, and, after initiating a position Aug. 24 at roughly $64.53 per share, the market has given us opportunities to scale up into weakness. Each of our next three purchases, including Wednesday’s, has helped lower our cost basis. For Nvidia, Cramer suggested that the chip designer’s stock is being mistakenly dragged down Wednesday by Seagate Technology ‘s (STX) guidance cut . “Seagate is old technology — disk drive, hard drive. Nvidia is new technology,” Cramer said. While Nvidia shares have struggled mightily this year, Cramer indicated he believes that, for long-term investors, the stock is down at attractive levels. 3. Where we stand on Disney In response to a question from a Club member on whether we’re looking to buy Disney (DIS) on this pullback, Cramer said there’s a few reasons why we’ve not done that yet. One of the biggest reasons is related to portfolio management strategy: Disney is already one of our biggest positions, holding a roughly 4.56% weighting as of Wednesday. Just three stocks — Apple (AAPL), Wells Fargo (WFC) and Morgan Stanley (MS) — have larger weightings. Cramer said if Disney shares drop well below $100 apiece again, he’ll be making the case to buy more, even if means the stock’s weighting in the portfolio goes up to about 5%. “The stock shouldn’t be there” below $100 per share, Cramer said, citing the resilient strength of the consumer so far and the company’s booming theme park business. (Jim Cramer’s Charitable Trust is long TJX, NVDA, DIS, AAPL, WFC and MS. 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.
3 takeaways from the Investing Club’s ‘Morning Meeting’ on Wednesday
