We are selling 250 shares of Stanley Black & Decker at roughly $90.54. Following the trade, Jim Cramer’s Charitable Trust will own 510 shares of SWK, decreasing its weighting to about 1.25% from 1.86%. We’re making a sale into strength Friday, with the S & P 500 on pace to deliver back-to-back weekly gains north of 2%. We’re raising some cash after this strong run because the S & P Short Range Oscillator breached 4%, meaning it’s now in overbought territory. Whenever our trusted momentum indicator signals that the market is overbought, our discipline kicks in and we look to lighten up on stocks. The stock we’re trimming on Friday is Stanley Black & Decker. Shares of the DeWalt parent are off to a good start to 2024,rebounding nicely after falling below $80 in December on fears about higher tariffs on Chinese imports and stubbornly high mortgage rates slowing housing turnover. When the stock traded around $86 per share last month, we downgraded our rating to a 3, meaning sell into strength. We noted our concerns about tariffs and signaled our preference for Home Depot in the home improvement space. Stanley Back & Decker shares have climbed about $4 each since our downgrade, thanks to the recent easing in the 10-year Treasury yield after a couple of encouraging inflation reports. Fears that President Donald Trump would institute higher tariffs on China on his first day back in the White House also proved to be overblown. Early this week, Trump indicated a 10% tariff could begin as soon as Feb. 1. With these factors pushing Stanley Black & Decker back into the $90s, we are staying true to discipline and selling stock into this recent strength. This sale also acts as a good hedge in case Trump suddenly gets more aggressive with his tariff rhetoric. Lastly, as Jim Cramer explained Thursday during our Monthly Meeting, it may take the company a few more years before it delivers the operating results we had hoped to see. With this sale, we will realize a small loss of about 1% on stock purchased in August 2023. (Jim Cramer’s Charitable Trust is long SWK. 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.