We're using Tuesday's down market to buy more of our two newest stocks - CNBC

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We're buying 100 shares of Starbucks (SBUX) at roughly $83.51 each; and 150 shares of TJX Companies (TJX) at roughly $62.16. Following Tuesday's trades, Jim Cramer's Charitable Trust will own 525 shares of SBUX, increasing its weighting in the portfolio to 1.5% from 1.22%; and 700 shares of TJX, increasing its weighting in the portfolio to 1.5% from 1.18%. We want to correct something we said in Tuesday's "Morning Meeting." The market is, in fact, oversold according to the S & P Oscillator . After Monday's session, the Oscillator moved to minus 5.1%. As a reminder, any time the Oscillator moves below minus 4%, it signals that the market is oversold, which means it could be due for a bounce. If you have been following us over the years, then you already know what our discipline states. We hold our nose and buy when the market is oversold, just like how we hold our nose and sell when the market is overbought . Of course, the Oscillator could become more oversold from here and the market could continue to drop. There have been several instances this year when we have seen the Oscillator reach an extremely oversold level of minus 10% before finally rebounding. But at a minimum, we think an oversold Oscillator serves as a reminder that stocks have been hit hard in a very short period and could be due for a bounce. We are looking around the portfolio for stocks to buy — but for now, we are sticking with our two most recent initiations: Starbucks and TJX. The two stocks were trading slightly lower from our first buys last week, creating what we see as an opportunity to scale deeper into them. As much as we like a stock for the long run, it's nearly impossible to predict what the market will do in the short term. That's why we always keep our buys on the smaller side when adding a new stock and slowly build out our positions over time. For Starbucks, we initiated a position last Monday because we believe the investments and improvements interim CEO Howard Schultz is making will improve the company's long-term growth rate. We'll learn more details of the plan at the Sept. 13 Investor Meeting, which we believe could be a positive catalyst for the stock. For TJX Companies, we started buying shares of the company behind T.J. Maxx, Marshall's and HomeGoods last Wednesday because we think the purchasing environment for off-price retail has never been better. Retailers are working frantically to right-size inventory positions and discount items to get them out the door. One way they clear out their excess inventory is to sell merchandise to off-price chains at fire sale prices, which then allows TJX to offer high-quality product and value prices to their shoppers. (Jim Cramer's Charitable Trust is long SBUX and TJX. 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.

Traders work on the floor of the New York Stock Exchange (NYSE) on August 5, 2022 at Wall Street in New York City.

Angela Weiss | AFP | Getty Images

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We're using Tuesday's down market to buy more of our two newest stocks - CNBC

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