Don’t take your eye off….Mobileye (MBLY). Just sell it when it hits $100. And that’ll be sometime next year. (August 24, 2015)
I want to talk about Mobileye ( NYSE:MBLY ), and here’s why. Mobileye ( NYSE:MBLY ) has nothing to do with what’s happening in China. It has nothing to do with the fact that Alexis Cyprus, that Greek powerhouse, is packing his desk and he’s resigning from whatever position he held over in Greece. It doesn’t have anything to do with that.
It doesn’t have anything to do with all the knuckleheads at the Fed, including that James Bullard dude who kind of caused the crash last week because he said that he thought that we were still on track for a rate hike in September. Number 1. That guy knows a lot of stuff. Number 2. It’s just the wrong stuff. Number 3. The Fed is not going to hike rates in September. So this guy was any other position other than being a Central Banker, he would probably be fired. Instead he’ll probably be promoted; he’ll probably be the next Fed Chair.
Anyway, Mobileye ( NYSE:MBLY ) has nothing to do with any of that stuff. The market has absolutely been crushed. By the way, stand clear until the water’s done coming out of the garden hose, until it finds a floor. My bet is it will definitely be sometime this week if only for an oversold bounce. And frankly, seriously, that’s all it’s going to be is an oversold bounce. This is what a busted market looks like. Actually this is what a busted market looks like. This is just a week after what a busted market looks like.
So you’ve seen the highs of the year. That’s intuitively obvious to all but the most casual observer and all but the most rudimentary technicians; and you see some of those guys on TV. So this is now, in my view, the high. Good luck, we’ll probably ultimately get above 2000.00. But I don’t think there’s a snowballs chance in a furnace that this thing is getting back up above 2050.00. So this is now a sell the rallies, buy the EXTREME dips, and sell the rallies. It’s a different market out there than it was a week ago.
Back to Mobileye ( NYSE:MBLY ). If you weren’t, and this is really important, if you weren’t looking at stocks today, if you didn’t see this chart, if all you saw was the quotes, the fact that this went up 1.24 percent after the kind of decline it had, you would think this was a pretty good day. You would go like, “Oh, hey, this is great! I like Mobileye. I’m sure glad I bought it last week on the dip.” That’s what you would think, that would be great.
What you wouldn’t have seen was this big massive dumpage here. I mean this is like somebody had an ipecac cocktail. I mean there was so much puking going on here, but again, this has nothing to do with any of the aforementioned issues that I have discussed. It has nothing to do with “Jumpin’ Janet”. They can raise rates all they want it’s, not going to impact Mobileye ( NYSE:MBLY ) one bit. This is the George Jetson stock. Right?
So here’s the thing, I think you can buy this stock. I think you that you’ve got out to a weekly chart, just look at this and say, “Do you know what?” I’m not holding this for 65.00. I’m not holding this till 60.00. I’m holding this till sixteen; I’m holding this until at least until 2016. In fact you know what? I’m holding it till 100.00; I’m not selling this bad boy until it hits $100.00. And do you know what my bet is? My bet is you’re going to be selling it for $100.00 in 2016.
I don’t know exactly when, I just know this, the way this stock traded today tells me that it’s like, suddenly this thing goes down and every trader in the world, except me, I was looking elsewhere. Every trader in the world said, “You know what? This is a gift, I’m in.” This stock hit bottom right away and then rallied and drifted sideways on low volume the rest of the day.
So I’m telling you right now, if there’s one stock, and I’ve covered this before, me love Mobileye ( NYSE:MBLY ), and I’ve also acknowledged I missed it early. I kind of knew what was going on and I’m like the big loud mouth that’s going, “Oh I don’t like self-driving cars and all that.” I still don’t like the idea. Then I see these little seventeen-year-old chuckleheads with a car full of people who are texting to their buddies while they’re driving in the fast lane on the freeway; suddenly I like the idea of self-driving cars.
The bottom line is this, this was a seminal moment, this was a key trading day for Mobileye ( NYSE:MBLY ). My bet is you are not going to see $46.00; you’re not going to see the 200-day moving average, for a while. So what I would suggest doing is, start building a position. The stock was up big today from where it opened, it could probably pull back a little bit; we hope so. This is a gift.
If you can be buying this stock within today’s trading range, the lower the better, but I think that train has already left the station. But if we can be buying this stock and have a long-term time horizon, hey, if you’re looking for trades go to energies, there’s going to be a lot of snapbacks there tomorrow. But if you have a longer-term time horizon this is a stock that you can buy. Like I said, when it gets to 100.00 you can ask me whether to sell it, just don’t forget to thank me.
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