3 Stocks I Saw on TV: AMZN, NFLX, UA, NKE (wait, that’s 4)
This is my latest addition of my 3 Stocks I Saw on TV series: Under Armour ( NYSE:UA ), the stock’s down huge, about 8 percent right now, almost 8 percent. The reason: because Morgan Stanley downgraded the stock with a price target of 62.00, from 103.00. Not just Morgan Stanley but basically any of these analysts, they’re always moving in the wrong direction. So now they’re out ahead of the stock and the trend. The trend has been moving down for a while. Fundamentals have been lagging for a while. The deal here is that they’re losing market share. That is a fundamental bit of news. The stock has actually been forecasting that. You could say, “Oh, from the high here of 105.00.” But look, it’s been right to buy the stock. Here’s the 200-day moving average, 40-week moving average, same thing. It’s been right to buy the stock at the 40-week moving average for quite a while.
So if you are still doing that, that’s okay, you don’t get any demerits for that. But once the stock started to drift below the 200-day moving average you know that the stock is not under accumulation like it once was. Now, could this be a bottom? Typically, like I said, the analysts are always late. Either that, or they’re early, by years. Finally they downgrade the stock and you can see what happens to the stock, it’s just absolutely taking it in the shorts. But here’s the deal: I don’t care about the price target, $62.00, because they’re wrong on the upside as well, so who cares? What I care about is, technically I don’t want to be long this stock until it gets back above today’s intraday high, and that’s 72.41. Because then at least you can make the case that the stock is closing the gap, it’s filling the gap. But just stop and think about it for a minute; this stock has a lot further that it can fall. It was moving up because it was gaining market shares here.
About a year ago, early 2015, the stock was even lower than it is right now; so it is not beyond the realm of reason to think that the stock can at least make a round trip down to this 65.00 level. The stock is in free fall, there’s always going to be bounces, there’s always going to be oversold bounces. But this is one that I would say, “You know what? Why don’t you just take a pass on it? Just take a pass on it.” Hey, buy Nike ( NYSE:NKE ) if you have to. Me, I wouldn’t even buying Nike ( NYSE:NKE ) now. Even though the stock’s above the 200-day moving average, guess what? Same news, just kind of a different signal. Here, you’ve got the 50-day moving average, forming support, accelerates to the upside. It looks like a crescendo top to me, the exit is really about 62.00 here, which isn’t too far above where this is now. The bottom line is this: you don’t really want to be in Nike ( NYSE:NKE ). And you absolutely, definitely don’t want to be in Under Armour ( NYSE:UA ).
Now, that was just a freebie, we’re going to look at Amazon ( NASDAQ:AMZN ) and Nike ( NYSE:NKE ). Amazon ( NASDAQ:AMZN ), it turns out they won a Golden Globe award. What happened to the stock? It went up $2.00; that’s basically it. Mozart in the Jungle, supposed to be a great series. I would look at this and it’s like Yogi Bear in the bullpen. This stock has broken down below this support. You want to stay away from this. Yes, it’s still above the 200-day moving average, but these are a lot of red bars right in a row and they’re mostly above average volume. This is not institutional buying right now. This is institutional selling. I don’t think it’s too late to get out of Amazon ( NASDAQ:AMZN ).
Now, Netflix ( NASDAQ:NFLX ), this is a super choppy chart. On a short-term basis, hey, pick’em. It’s going to be higher. What’s our current price, 113.00? Here’s my prediction, it’s going to go to 115.00. Oh, here’s another prediction, it’s going to go to 110.00. Oh, here’s another prediction, both of my predictions are going to be correct in the next couple days. The bottom line is, this is a stock that is churning around. But if you really look at it I can’t say the uptrend is intact, it’s been chopping around for over half a year. But I can’t say the stock’s moving lower either, because yes it hit a high here, higher high, but now it’s just chopping around. It’s not printing lower highs and lower lows, it’s just chopping around in congestion here.
So here’s the thing: I think you just avoid Netflix ( NASDAQ:NFLX ). Listen to me because I’m giving you pearls: If this stock starts trading below $100.00, and if it starts trading below the 200-day moving average, you want to get out of this stock, because this would be a big sea-change for this stock. As long as it’s up here you can either be long or you can be neutral, but I wouldn’t want to be very bearish on Netflix ( NASDAQ:NFLX ). But I am watching, because this potential double top could start looking a lot like Apple when it used to have a triple top before it started imploding.
3 Stocks I Saw on TV Free Chart