We're trimming a hot bank stock in a very overbought market — locking in hard fought profits

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Markets,Investment Strategy,Jim Cramer

We're raising cash Wednesday into the stock market's post-consumer price index gains to stay disciplined.

We're selling 100 shares of Morgan Stanley at roughly $100.56 each. Following Wednesday's trade, Jim Cramer's Charitable Trust will own 1,150 shares of MS, decreasing its weighting in the portfolio to 3.62% from 3.93%. We're raising cash Wednesday into the stock market's post-consumer price index gains to stay disciplined with a very overbought signal from the S & P 500 Short Range Oscillator .

Even though we like the bank for its still-solid 3.4% annual dividend yield and healthy buyback, we are trimming the position Wednesday because these have been hard-fought gains that we don't want to give back in case the rebound in IPO activity and M & A losses steam. We're a little confused to see Games Global withdraw its planned initial public offering the other day, citing market conditions, given Wall Street's run back to new highs.

 

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