3 Stocks I Saw on TV: GOOGL, APPL, CMG (February 1, 2016)
GOOGL FB GOOGL FB GOOGL AAPL CMG MCD CMG
This is my 3 Stocks I Saw on TV video. Everyday there are stocks in the news and I pick 3 of them that I think are the most important for you to be looking at. Today we’re going to look at Google ( NASDAQ:GOOGL ) first.
I guess we call it Alphabet now, but I’ll be calling it Google for years until they change the ticker. Google ( NASDAQ:GOOGL ) reported earnings that absolutely blew estimates away (kind of similar to Mark Zuckerberg and Facebook), the stock is gaping up above $800.00. Now, here’s the deal: when this happened to Facebook ( NASDAQ:FB ), and there are only so many parallels you can draw, but you can draw a few of them. Facebook ( NASDAQ:FB ), this was their post earnings move. Right up to resistance, so you don’t want to buy that because it’s up against resistance, you need to sell it. Instead this is what happened over the next few days, right? So with Google ( NASDAQ:GOOGL ) you’re going to get a similar dynamic, at least tomorrow. Now I have ABSOLUTELY no idea whether the stock is going to pullback or not. But here’s what I can tell you: I’m not the only guy that’s noticed this kind of thing. This is not brilliant technical analysis on my part. It’s just looking a couple of charts, and that’s really important for you to know. Because what I see everybody else really sees too. My suggestion would be this, DON’T FADE THAT MOVE. Don’t be looking at this saying, “Oh, I’m going to sell into this strength.” Maybe that’s something to do in the short-term, but keep in mind, that short-term could be 5 minutes, it could be 5 days, it could be 5 weeks. I’m not a “Googleonian”, I don’t have a position in this stock. But I’m going to be watching this stock tomorrow. If it stays above 800.00, after the first 5 or 10 minutes of trading, it’s going to stay above 800.00 for a while and I’ll be in. So you may want to check that out.
Also, Apple ( NASDAQ:AAPL ); the big news was, Google ( NASDAQ:GOOGL ) went one way, Apple ( NASDAQ:AAPL ) is going the other way, as far as the most valuable company in the U.S. markets. And that was kind of the big news, “Hey, they’ve overtaken Apple.” Frankly, this was only a matter of time. So I’m not suggesting a pairs trade with, “Oh, short Apple and buy Google or vice versa.” I’m just saying this, I’ve said it before for many points and I’ll say it again. If you’re holding Apple ( NASDAQ:AAPL ) I’m not really sure why you’re doing that. You must be hungry and you like the Beatles. The stock is trending lower. There is no foreseeable catalyst; and when I say foreseeable I mean the next month or whatever. I just don’t see a catalyst that’s going to bring people into Apple ( NASDAQ:AAPL ). It has had a MONSTER move over the last few years. Big money manager’s funds have been lightening up on this stock. They began lightening up right up here at the top, which is what “smart” money does, which is why tops are tops. When the “big” money is done buying and it’s actually starting to sell, who is it selling to? It’s selling to the poorly capitalized traders, the “little” money. And why is it “little” money? Because “little” money always buys at the top. If it didn’t it wouldn’t be “little” money, it would be “big” money. This is one of the truer things that you’re ever going to hear. You don’t want to be buying yesterday’s superstar after it’s topped out and is moving lower. We’ve seen that movie before and it doesn’t work. Don’t let Apple ( NASDAQ:AAPL ) work you. You just don’t want to go there.
Now, the other stock I want to look at is Chipotle ( NYSE:CMG ). They report earnings tomorrow after the bell. You know they got absolutely trashed on this whole E. coli thing, which I get (not E. coli, never had that), but the stock has taken a big dump because of this E. coli thing. Now it’s rallied back. Apparently the CDC is going to give it a clean bill of health. Okay, whatever. The CDC is always behind the curve. Guys, they use some of your money to build bike paths, look it up. So I don’t really care about them. This is what I care about: I care about the weekly chart. This is a stock, we know why it has really been moving down like it has. Look at McDonald’s ( NYSE:MCD ) in the other direction, not bad. What would you rather have, a Big Mac or a Barbacoa Burrito? What I think is happening here, this is kind of done going down, it’s oversold. You’ll probably see a big of a move tomorrow after the bell. What I would suggest you do is stay here in the weekly time frame. Don’t get caught up in this, because it’s just too volatile. If you’re a real nimble trader, that’s great, but stick here in the weekly time frame. This stock is WAY overextended below the 200-day moving average. If it starts trading, say above 480.00, you’re probably going to see it continue to rebound, just as a function of so much money coming out; it’s time for new money to come in.
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