Shortly after the opening bell, we will sell 25 s of Broadcom at roughly $272. Ing the trade, Jim Cramer's Charitable Trust will own 575 s, decreasing its weighting to 4.
Consistent with what we said last Tuesday, we are peeling off some s of Broadcom ing its strong push to new all-time highs.
After another 2% move on Monday, s are up nearly 19% year to date and almost 90% from its lowest close in April. Over the past 12 months, the stock has gained 68%, trouncing the S & P 500's 13% return.
This stretch of strong outperformance has kept this position as one of the largest in the portfolio.
We remain bullish on the semiconductor and software company's long-term artificial intelligence potential, particularly in its custom AI accelerator and networking segments.
However, as we noted last Tuesday, we're trimming our position slightly to avoid getting too greedy. From this sale, we will realize a huge gain of 220% on stock purchased in August 2023.
Lastly, this trim satisfies our discipline around raising a little bit of extra cash when the market is overbought, according to the S & P Oscillator, our trusted momentum indicator.
Ing Monday's rally, the Oscillator increased to 4. 35% — anything above 4% indicates the market is overbought and could be due for a pullback or a pause to consolidate recent gains.
And the market gains have been plentiful lately, with the S & P 500 rallying 10. 6% in the second quarter. (Jim Cramer's Charitable Trust is long AVGO. See here for a full list of the stocks.
) As a r to the CNBC 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 a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade.
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