The indicator guiding our next move as stocks shake off breakdown in peace talks
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Another resilient session for the stock market , which, at least for Monday, is unfazed by the spike in oil prices and the uptick in Treasury yields. A gain for the S & P 500 would mark its eighth advance in the past nine sessions. WTI Crude climbed as high as $105 per barrel this morning after the meeting between the U.S. and Iran did not immediately translate into a deal. The breakdown in talks led President Donald Trump to order a blockade of all maritime traffic entering and exiting Iranian ports as of 10:00 a.m. on Monday. Still, there is optimism that a deal will be made before tensions escalate again. The S & P 500 added to its gains, and WTI briefly fell below $100 after Trump told reporters that Iranian officials called this morning, wanting to make a deal. It’s unclear what impact Monday’s market reversal will have on the S & P Oscillator. This technical tool moved back into overbought territory after Friday’s session, exactly one month after the S & P 500 entered oversold territory on March 10. The S & P 500 closed at 6,781.48 when it first became oversold, and it currently trades around 6,850. While the index was little changed over this period, it shows you why we are increasingly opportunistic when the Oscillator moves deeper into oversold territory. Energy was the best-performing sector for most of Monday, but that changed when Trump gave his Iran update. Financials were near the top of the leaderboard despite the post-earnings sell-off in Goldman Sachs . But technology performed best, with secular strength in AI-related stocks once again lifting the market. There was also a significant rebound in enterprise software following a couple of ugly sessions late last week on concerns that AI will disrupt the group. Names like CrowdStrike , Salesforce , Palo Alto Networks , and Microsoft each traded higher by at least 2%, but all are still down more than 10% year to date. Meanwhile, traditional defensive sectors like utilities, staples, health care, and real estate were the only sectors in the red. There are no major earnings after the closing bell on Monday. Before the opening bell on Tuesday, we’ll see earnings from portfolio holdings Johnson & Johnson and Wells Fargo , as well as JPMorgan , BlackRock , Citigroup , and CarMax . On the data side, we’ll see the March producer price index report. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) 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.
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