Recently, the Jim Cramer Charitable Trust sold 10 shares of Goldman Sachs stock, which were priced at around $835 each. Following this transaction, the trust’s total holding of GS stock decreases to 200 shares, adjusting its portfolio weight from roughly 4.6% to about 4.4%. On Wednesday, the financial sector performed notably well, allowing us to take advantage of the robust performance at Goldman Sachs. The stock price has climbed back over $800, bouncing back from earlier losses related to its October 14 third-quarter profit drop. Initially, despite strong financial results, Goldman shares dipped more than 5.5% early in the day to around $742, prompting us to upgrade our rating to a Buy. The stock later peaked at nearly $834 by November 12 but faced significant declines over the next three days. Fortunately, with gains in nine of the last eleven trading sessions, the stock has once again come within 1% of its previous closing high. Given this upward movement, we have adjusted our rating to a Hold, classified as a 2.
Another factor contributing to the recent sell-off is that the market is approaching the overbought limits. The recent market rally has caused the S&P’s short range oscillator to rise to 3.02%, nearing the overbought threshold of 4%. Over the past weeks, we’ve been making significant purchases during a market downturn when the oscillator was nearing oversold conditions. However, aside from some withdrawals from Disney, we haven’t paired these purchases with sales. The cash generated from trimming our Goldman position will help us regain liquidity should the market decline further. Consequently, this sale will net an approximate gain of 48% on the Goldman shares acquired in December 2024. It’s important to clarify that this transaction doesn’t alter our belief in Goldman as a solid long-term investment and a promising option for tapping into the resurgence of trading on Wall Street.
