We’re making six trades Monday morning, as the recent market volatility driven by fears of a U.S. recession intensifies. Shortly after the opening bell, we are exiting our position in Ford , selling all of our 5,550 shares at roughly $9.48. We are also exiting our position in Wynn Resorts by selling our 600 shares at roughly $73.25. In addition, we are buying 190 shares of DuPont at roughly $77.10, increasing its weighting in the portfolio to 3.25% from 2.80%. We are also buying 85 shares of Dover at about $171, increasing its weighting to 2.14% from 1.68%. We are adding 350 shares of Nextracker at roughly $38.65, increasing its weighting to 1.12% from 0.66%. And lastly, we are buying 280 shares of Wells Fargo at $50.59, increasing its weighting in the portfolio to 3.80% from 3.35%. We’re exiting positions we deem lower quality and moving a large portion of that cash into higher-quality positions. During volatile markets this — the Dow futures are down 1,200 Monday morning after a turbulent week — we always want to move up the quality curve in the portfolio and buy stocks with clean balance sheets, strong management teams, and offer growth at a reasonable price to earnings multiple. Ford fell out of our quality bucket after the company missed the quarter due to ongoing quality issues, and failed to initiate a share repurchase program. We downgraded our rating to a 3 after the quarter. We’re also exiting our position in Wynn Resorts, which we downgraded to a 2 last week on concerns about the U.S. consumer. If Wynn can’t deliver robust results in Las Vegas and Boston in the quarters ahead, it will make it even harder to justify owning a stock so levered to China. Last Friday, we said that we had our eyes on the pullbacks in DuPont, Dover, and Wells Fargo. We pegged Dupont and Dover as buys because both companies just reported strong quarters and gave bullish full-year outlooks. Wells Fargo didn’t report a great quarter, but the stock has been hit hard and is barely trading above its book value per share of $48. Wells Fargo also pays a solid dividend and can repurchase stock — two factors that we gravitate to during volatile markets. In addition, we’ll add to our tiny position in Nextracker, which we started recently as a speculative way to play the growing electricity demands around the world. The company reported a strong quarter last week that was a little lumpy due to the timing of projects. Still, we like the long-term thesis and at around $38 per share pre-market this is not an expensive stock trading at roughly 12.6 times earnings. Lastly, Nextracker should benefit from lower rates since most of the cost of the life of renewable projects like solar and wind is upfront. Correction: An earlier version of this story misstated the number of shares being bought of Dover, Nextracker and Wells Fargo. (Jim Cramer’s Charitable Trust is long F, WYNN, DD, DOV, NXT, WFC. 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.
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