3 Stocks I Saw on TV: AAPL, C, INTC

by Gary VRX 

This morning I woke up, listened to the Opening Bell, turned on CNBC, and man I saw a lot of stocks on TV. These are the 3 that I’m doing here: Citigroup ( NYSE:C ), Intel ( NASDAQ:INTC ), and Apple ( NASDAQ:AAPL ) for varying reasons, but lets just jump right in. First of all Citigroup ( NYSE:C ). They reported earnings and they beat on revenue and earnings estimates. The stock’s down 6.5 percent. Which by the way, goes to show you how stupid it is to be looking at earnings estimates and actually think that they’re anything other than just wild guesses. Think about it, what’s the point? Somebody needs them, I’m just saying YOU don’t. So the bottom line is, is this a buying opportunity for Citigroup ( NYSE:C )? I would say it depends on what your time frame is. Overall, I would say actually not.

But lets just zoom out to begin with; weekly chart. Alright, this thing looks like a lawn dart. I remember seeing this, I actually called this, years ago, the Wile E. Coyote pattern. I remember looking at it right back here; it happened somewhere in here. It was kind of back here when this thing was looking really good. Suddenly it just broke through and just absolutely kept tanking. Well, we’re seeing a similar thing now, and I’ll say only similar. By the way, isn’t this humbling when you look at this? So we zoom in and see this, this is breaking key support. On this one I wouldn’t touch this. In fact I will tell you this, I think 6 months from now you could look back at this, lets say you sold right now (I’m not telling you to do that, I’ll get to the daily chart in a second), but lets say you sold right now.

I’ll bet 6 months from now you’ll be able to say, “You know what? I sold this thing right near the top. I basically top ticked this thing.” It really truly does have a lot of downside momentum that I think is just starting to get going. But if we look at the DAILY chart, and this is really what matters, it’s kind of a right here, right now moment. The stock’s down so big, volume is HUGE. I would give you this trade: If the stock trades BELOW Friday’s intraday low of 41.85, if next Tuesday the stock trades below that, stay away from it. Look, if you’re still long this stock I can’t help you, I’m talking about a new trade. If the stock trades BELOW this low here of 41.85, then just stay away from this stock, just back off. On the other hand, if it trades above it, you just keep a stop just below this level. Now, if the stock happens to gap, if it gaps DOWN on Tuesday, and who knows, this thing may gap up to 44.00, in which case I would say go ahead and buy it and take it for a ride; because this was a climax low, a capitulation. But if instead, the stock does gap lower, I wouldn’t be buying it until the stock started trading above Friday’s close of 42.47. There are a bunch of different ways you could make this trade, but I’ll stand by my analysis.

Intel ( NASDAQ:INTC ): They reported John Chambers beats by a penny, the guy did that all last century. They reported earning, seemed okay except their chips that they make for cloud computing didn’t really do that well. By the way, that implicates a bunch of other businesses too, none of which I’m going to talk about in this, because it’s 3 Stocks I Saw on TV rather than 12 Stocks I Saw on TV. So this gapped down. This is like a “tombstone doji” on steroids. The stock gapped WAY down, could not fill much of the gap at all, and then closed back down near the low. You just don’t want to go long this stock. Frankly, the volatility is such that if you’re long this stock it’s really just simply because of a lack of imagination, and I really mean that. Again, here’s the low of 29. 45. If you want to buy this stock and say, “Well this is my chance to buy Intel below 30.00,” Great! Just keep a stop a little bit below today’s intraday low and you’ve got a low risk trade.

Apple ( NASDAQ:AAPL ): The suppliers are taking it on the chin, and that is giving Apple ( NASDAQ:AAPL ) shareholders a little bit of an issue. Here there was a new story during the day that growth funds, momentum funds, are dumping Apple ( NASDAQ:AAPL ). And value funds are starting to warm up to this, right? Well here’s what you need to know: If you read the article it’s not that the growth funds are dumping Apple ( NASDAQ:AAPL ). It’s that they HAVE have been dumping Apple ( NASDAQ:AAPL ) for quite a while. I saw one mention like in June or something, “So and so has been selling since June.” The reason I’m mentioning this is this, charts are really important. If I could get the BEST chart guy in the world and pit him against the BEST fundamental guy in the world, I would take the chart guy EVERY SINGLE TIME, EVERY TIME. Because you make money charts. You don’t make money on fundamentals.

Everybody’s still all lathered up here with the phone, and the watch, and this and that. Meanwhile, as we now learn, a lot of these growth funds, and by the way, they can do what they want to do, they’re not doing anything wrong except trying to make money for their investors; they start dumping this stock because they think that the best days of growth are behind Apple ( NASDAQ:AAPL ). And after being in a Microsoft store with my brother, where he bought a Surface tablet, I would honestly have to say that those investors would be correct. If I had it to do over again, I wouldn’t have bought myself a new iPad. I would have walked down to the end of the mall and bought a Surface, I like them better. So the bottom line is this though, Apple’s ( NASDAQ:AAPL ) down below $100.00. A lot of folks have been dumping the stock. It’s been very, very obvious, very evident in this chart, and now you’re finally starting to HEAR why this stock has been under such pressure. This is always the case, where the news comes out AFTER the chart shows what the news is. And you can take that to the bank.

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