With the market overbought, we're raising cash by selling more shares of this industrial
We are selling 75 shares of Emerson Electric (EMR), at roughly $88.49 apiece. Following Tuesday's trade, Jim Cramer's Charitable Trust will own 525 shares of EMR, decreasing its weighting in the portfolio to 1.61% form 1.84%. The market is roaring Tuesday , with Treasury yields falling in response to a softer-than-expected October consumer price index report. Based on the mild inflation data, investors are likely concluding that the Federal Reserve may no longer need to raise interest rates further, allowing for a so-called soft-landing for the economy. But even with Tuesday's outsized moves — the S & P 500 has jumped more than 2% — we are staying disciplined by adhering to the S & P 500 Short Range Oscillator , which shows the market to be squarely overbought. As such, we need to replenish our cash reserves at these higher levels. We are, therefore, further reducing our position in Emerson Electric . The decision comes after we sold some shares Monday on concerns about execution following the company's weaker-than-expected earnings report and outlook last week. To be sure, Emerson has valuation on its side, with shares trading at a significant discount to its five-year average. And given the stock is so cheap, we think it has the potential to bounce back. But our concerns over management's execution and its questionable acquisition of National Instruments override valuation, which is why our plan is to slowly sell the stock into pockets of strength. With EMR up about 2% Tuesday, we'll realize a loss of about 7% on stock we first purchased last December. (Jim Cramer's Charitable Trust is long EMR. 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.

A worker assembles an industrial valve at Emerson Electric's factory in Marshalltown, Iowa, July 26, 2018. Timothy Aeppel | Reuters