3 Stocks I Saw on TV: AMZN, MSFT, UA (January 28, 2016)
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Every day I look at the financial networks, I look at CNBC and see what’s happening in the market. I’m looking for 3 stocks everyday that I can watch on TV and then get a sense of where they’re going to trade. We’re going to do that today.
First of all, Microsoft ( NASDAQ:MSFT ). These guys beat earnings, and they beat them pretty good. The stock is up a bit after hours. So what are we going to do tomorrow? We look at the stock. Long-term this has been in, basically, a nice uptrend. I mean, for cryin’ out loud, this is Microsoft ( NASDAQ:MSFT ); it’s a stock that you hold, you don’t really trade it. But after this long consolidation and a breakout the stock is right back to (this is the box, you just draw it over), the stock is right back to this bounce area, right back to prior resistance. Now it’s support and starting to move higher. From a TRADE standpoint, I have no problem owing Microsoft ( NASDAQ:MSFT ) long-term. In fact I would much rather that than Apple, absolutely. My brother really likes his Surface Pro, more than I like my new iPad, so go figure. Anyway, from a trading perspective, the stock is really, really liquid. I would kind of sell into this, take some profits if you’re long. Because where’s the catalyst for the next move higher? I really don’t see one. So from a trading perspective, I’d want to go ahead and sell into this a bit. But longer-term, I think you want to keep some. Because again, LONGER-TERM, like talk to me in 2017; you’re going to be happy.
Now, Amazon ( NASDAQ:AMZN ): The company missed earnings by a third. The estimates were for $1.56, the company actually reported $1.00. That’s not particularly good, you can see this in the after hours. So this is the deal: Lets look at the intraday chart (last time I did this I was looking at this when I was doing Stock Market Mentor and then with Option Market Mentor, every time it was just a little bit lower). This stock is really in trouble, right? Well, here’s what I would suggest you do, look at this 560.00 level, definitely the 550.00 level. If this stock stays ABOVE that level, I think you want to be long this stock. You want to go ahead and take advantage of the dip. Because if you look at the long-term chart, this is a stock that DOES not come back, since it broke out here, it just doesn’t come back to the 200-day moving average very much. And so that’s a stock, that when it does do that, you want to take advantage of it. I think you’re going to get a second chance tomorrow.
And then the last one we’re going to look at is Under Armour ( NYSE:UA ). These guys reported a blowout quarter. You can see what happened. The stock gapped up 16 percent and then continued to run. These are just really hard stocks to buy at the open. I sure wouldn’t do it, I wouldn’t do it, it’s up too much, it’s right at the 50-day moving average, you don’t want to buy. But then you look at the 5-minute chart (you can look at any intraday chart), and you’ll see, not buying was actually the correct thing to do; in my view. Sure maybe it goes up a little bit, but it was only towards the end of the day the stock started trading above that level that it was kind of right to buy. So what do we do now? I like Under Armour ( NYSE:UA ), but right now there’s just no way I could buy this stock. You look at the weekly chart, this was the channel, right along there. This stock is broken. Again, I like Under Armour ( NYSE:UA ), I think, ultimately, you’ll be happy when the stock gets back above $100.00. But I don’t think this is where you need to put your money right now. Because, again, it is a broken stock, and it’s not getting “broker”, but it’s just kind of in the repair process. We’ve seen a lot of charts like this, they break down and then the stock trades around, and maybe ultimately moves up to a new high. But we don’t see this kind of thing, not right away. So I think you just need to steer clear of Under Armour ( NYSE:UA ) for the time being. And by the way, if you’re long the stock, just keep a stop-loss on it. You’re not voting for president here; you’re not just casting you’re ballot one time. You can trade in and out of your positions. But just don’t make a big bet, one way or another on this.
3 Stocks I Saw on TV Free Chart