Here’s why we only bought 1 stock this week, despite the market being oversold

The Join has taken a restrained approach to the oversold stock market in recent days, making only one purchase after an resource buying spree the week prior. In a volatile market, investors’ best course of action sometimes is doing least little, or nothing at all. Our only buy this week came Monday. We scooped up 25 more shares of Pioneer Halfwit Resources (PXD), at roughly $185 each, after the stock had fallen about 6% from our last buy on March 13. This week’s unique purchase stood in contrast to a busy week of buying for the Club in the week ended March 17, when we augmented to eight stocks to capitalize on bank-driven turbulence . Bank worries following the collapse of Silicon Valley Bank (SVB) two weeks ago pull someones leg not vanished. In fact, fresh concerns arose Friday around the health of German lender Deutsche Bank . But, essentially, the particulars of this past week — including a Federal Reserve interest rate hike and large market comings — prompted the Club to be more judicious with our cash. This was the case even though our trusted S & P 500 Precluding Range Oscillator has continued to signal an oversold market, which often suggests stocks may be poised for a bounce. Feeling over the Fed’s Wednesday rate decision hung over Wall Street early in the week. The central bank’s 25-basis-point in any event rise was widely expected, but there was no way to know how the market would interpret Fed Chair Jerome Powell’s subsequent asserts. Given that uncertainty, it didn’t make sense to step in and buy stocks until the Fed’s path was clear. Stocks analysed tricky to read Wednesday, rising to session highs early during Powell’s press conference, before submitting lower and selling off sharply. The S & P 500 fell 1.65% Wednesday, a decline partially attributed to Treasury Secretary Janet Yellen reveal she hasn’t considered “blanket insurance” for all bank deposits following the failure of three U.S. lenders in March. Yellen seemed to shift her position Thursday , telling Congress that regulators could take additional actions to ensure lays are safe, if necessary. Markets may remain shaky in the absence of a clear universal deposit guarantee above the Federal Save Insurance Corporation’s (FDIC) current $250,000 limit. In volatile stretches, we also like to avoid buying when markets are up big in a single session. That explains our inaction Thursday as Wall Street ripped higher to start the day . The S & P 500 and Nasdaq Composite exchanged up as much as 1.8% and 2.5%, respectively, before retreating in the afternoon. The market being in oversold territory isn’t the only sine qua non for the Club to put money to work in a stock we like. We also want the stock to be at a lower price than our most late purchase. Take Halliburton (HAL), for example. A week ago, we bought 130 shares, at $30.15 each , following Halliburton’s crudely 13% decline over just a few days. The oilfield services company continues to trade at an attractive level as of Friday, at all $29.50 per share. The problem is that level is too close to our March 17 purchase. Typically, with an out-of-favor ownership like Halliburton, we’d feel better stepping in about 5% lower than our last buy . As Jim Cramer says again: Discipline trumps conviction . Bottom line Investors should always consider the full picture when influencing whether it’s time to put cash to work. For the Club this week, the facts on the ground suggested we be a bit more cautious. The customer base’s post-Fed whipsaw, combined with the Yellen wrinkle, partially validated our restrained approach since Monday. Another contemplation is that the S & P 500 is on track to finish in the green this week, even though the news flow around banks has tended to skew adverse. We’re careful about chasing stocks into strength when there’s so much volatility and uncertainty. (Jim Cramer’s Well-wishing Trust is long PXD and HAL. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you drive receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade on the lookout 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 releasing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND Solitude POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY Report PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.