Every weekday, the CNBC Investing Club with Jim Cramer does a live “morning session” at 10:20am ET. Here’s a recap of Tuesday’s key moments. Reduce Technology Exposure Watch for an Opportunity to Buy Healthcare Looking at an Industry Play 1. Reduce Technology Exposure Stocks edged higher on Tuesday, with the Nasdaq Composite up 0.22% by mid-morning . The tech index has been on the rise since Friday’s strong rally, which provides an opportunity to lighten stocks like Microsoft (MSFT), a move we made on Monday. The tech sector remains overvalued in a market that doesn’t bode well for high-growth, multiple names, meaning they’re poised to take a beating this earnings season. “We’re not abandoning Microsoft, but we’re just trying to lighten up because we’re afraid of bad news,” Jim Cramer said on Tuesday. 2. Watch healthcare for buying opportunities We continue to like healthcare stocks that are recession-proof and have strong fundamentals. But the sector has come under pressure so far this year, amid profit-taking and political uncertainty over the direction of US healthcare policy. If healthcare stocks continue to decline, the Club could use the opportunity to strengthen our positions in pharmaceuticals such as Eli Lilly (LLY) and Johnson & Johnson (JNJ). Eli Lilly was down 0.5% Tuesday morning at $348.07 a share. J & J was down 0.17% at $175.29 a share. 3. Looking at an industrial play We would consider adding to our position in industrial giant Emerson Electric (EMR), if the price were to drop. We have gradually increased our position in this reasonably priced and recession-proof name since we started in December. EMR also has more room to run, especially as the company restructures its portfolio to eliminate slower-growing, lower-margin units. (Jim Cramer’s Charitable Trust is long EMR, LLY, JNJ, MSFT. See a full list of stocks here.) As a subscriber to the CNBC Investing Club with Jim Cramer, you’ll receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a share in his charitable trust portfolio. If Jim has discussed a stock on CNBC TV, wait 72 hours after issuing the trade alert before executing the trade. INFORMATION ON THE ALTERNATE INVESTMENT CLUB IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, WITH OUR DISCLAIMER. NO OBLIGATION OR FIDUCIARY DUTY EXISTS OR IS CREATED BY YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTOR CLUB. NO SPECIFIC RESULTS OR BENEFITS ARE GUARANTEED.
