'You have to be ready for a sell-off,' Cramer says
Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. ET. Here's a recap of Friday's key moments. Be ready for a sell-off Stick with Ford Don't invest based on fear 1. Be ready for a sell-off U.S. stocks rose Friday, adding to strong weekly performances for all three major Wall Street benchmarks. The S & P 500 and Nasdaq Composite are on pace for their best weeks since March, climbing more than 3% and roughly 4%, respectively. The blue-chip Dow Jones Industrial Average , meanwhile, is poised to finish in positive territory for its third-consecutive week. Jim Cramer said Friday that the strength in this overbought market continues to present profit-taking opportunities. We found one earlier , locking in gains in industrial gas giant Linde (LIN). "We're not sitting here and saying, 'We hate our stocks,'" Jim said. "We're sitting here and saying, 'When we're this overbought, you have to be ready for a sell-off.'" 2. Stick with Ford Jim said he's happy to let Ford Motor (F) shares run ahead of a visit with management next week at the Blue Oval's headquarters, just outside Detroit. The automaker has been one of our top-performing stocks over the past month, climbing more than 27% amid investor optimism around its electric-vehicle charging partnership with rival Tesla (TSLA). Jim said he plans to press Ford CEO Jim Farley on the discrepancy between the company's full-year adjusted free-cash-flow guidance and the much-lower estimates from Wall Street analysts. "We want to know cash flow. In the end, cash flow and being able to transition from [internal combustion engines] to EV is central, and we're going to spend a lot of time on that," Jim said Friday. 3. Don't invest based on fear Investors selling Humana (HUM) Friday are acting out of fear, Jim said. After rival UnitedHealth Group (UNH) spooked health-care investors earlier in the week with comments about elevated elective procedures , Humana reaffirmed its full-year earnings-per-share guidance Friday. However, the Medicare Advantage-focused health insurer acknowledged an uptick in surgeries and other medical services. The firm now expects its benefits expense ratio, a closely watched industry metric, to come in toward the high end of its full-year guidance. Shares of Humana fell more than 2% Friday, but we don't think that move is warranted after its big sell-off Wednesday. "Fear is dominating. I don't make decisions based on fears. I make decisions on numbers," Jim said. (Jim Cramer's Charitable Trust is long LIN, F, HUM. 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.
Source: CNBC
