Herbalife (HLF) or Nuskin (NUS)?
Discussed in this article: Herbalife ( $HLF )
I want to look at Herbalife ( NYSE:HLF ) verses Nu Skin ( NYSE:NUS ) here. Herbalife ( NYSE:HLF ) reports earnings on October 28th, so that’s right around the corner, next week. This is of course Carl Icahn’s buddy; the stock has been a little bit choppy, but it’s generally been trading sideways.
So as I look at this, yes we have the potential head and shoulder pattern, but aren’t we getting a little bit ahead of ourselves here? It’s easy to draw this kind of thing and then just expect it to fall. I don’t really think that’s going to happen, I think that you could probably hang on to Herbalife ( NYSE:HLF ) over earnings as long as you keep a small enough position to where, if the stock falls below 60.00, you’re not hurt too bad. Your stops don’t work when the when the company announces earnings. You just need to make sure that you have the proper position size and only you can figure out what that is.
Now, on the other hand, Nu Skin ( NYSE:NUS ) here, they’ve already reported earnings. Look at this stock, guess where that was? The stock gapped up, traded all the way down to the prior day’s trading range, and then closed about midway through the trading range, but still well above the prior close.
Now where is the Stock? Well it’s continuing to drift higher. Just from a pure safety standpoint, if I had to choose between Herbalife ( NYSE:HLF ) and Nu Skin ( NYSE:NUS ) I would actually take Nu Skin ( NYSE:NUS ) just because it seems like it’s a little more predictable. Now, this is not going to move very much over the next few days, maybe a week or two, simply because the stock has run up, it’s gapped, it’s held this level here, I would expect this to trade sideways.
Any chance you get to buy this stock, we’ll say close to here, watch for the bounce, if it doesn’t bounce, back away, but then definitely look to buy it when it gets closer to the 50-day moving average. Here’s the thing, Nu Skin ( NYSE:NUS ) is just a lot more stable stock than Herbalife ( NYSE:HLF ). I never thought I’d be saying that about Nu Skin ( NYSE:NUS ), but the trend is pretty clear. So as long as you just trade with the trend on you’re going to have a good friend.