Michael Huber 
We are selling 75 shares of Honeywell at roughly $216. Following the trade, Jim Cramer’s Charitable Trust will own 325 shares of HON, decreasing its weighting to 2% from 2.45%. When markets are volatile to the upside — like it is Wednesday in response to Republican nominee Donald Trump winning the U.S. presidential election, according to NBC News projections — we want to take advantage of this strength to lighten up on stocks of lesser quality and uncertain growth outlooks. Remember, one of our core beliefs is to never sell your winners to subsidize your losers. If in need of cash, it’s much better to take a loss and sell something that’s underperforming. After trimming some winners earlier this morning, and locking in huge gains in Wells Fargo and Morgan Stanley, we want to be sure we’re making sales in our less-favored stocks too. With the industrials charging higher in anticipation of an economically friendly environment, we see this as an opportunity to lighten up on Honeywell. As we detailed in our sale of Honeywell stock on Tuesday, we appreciate how management has finally tapped into its billions of dollars of dry powder and balance sheet capacity to make a series of bolt-on acquisitions aimed at boosting the company’s growth outlook. The company’s pledge to simplify the business around three so-called megatrends — the future of aviation, energy transition and automation — is also a positive. However, execution over the past couple of quarters has been spotty and organic sales growth has lagged its peers, capping the stock’s performance. After another rough third quarter where the company missed revenue expectations and lowered its full-year sales outlook, it became clearer that there is no easy fix. Part of it was the economic environment, but execution played a role too. With Honeywell shares rallying Wednesday alongside other industrials as part of the “Trump Trade,” it’s an opportunity to sell into strength a stock that has disappointed. We will realize a small gain of about 2% on stock purchased in late 2021. If we weren’t restricted from trading stocks that Jim Cramer mentioned on CNBC TV over the past three days, we would be taking this cash to buy shares of Home Depot . The home improvement retailer and other housing-related stocks are sitting out the rally because interest rates are surging on fears that tax cuts, tariffs, and stricter immigration laws will be inflationary. The spike in yields puts a dent in our Home Depot thesis, but it doesn’t derail it. That’s why we would be buying this dip. We are in Home Depot because when mortgage rates fall from their cycle highs to somewhere around the 5% to 6.5% range, a new housing turnover cycle begins. (Jim Cramer’s Charitable Trust is long HON and 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 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.
