3 Stocks I Saw on TV: LNKD, DATA, SPLK (February 8, 2016)
LNKD DATA SPLK DATA LNKD
If you’re a hardcore trader you probably have CNBC on all day long. You watch the Opening Bell, Power Lunch, Closing Bell, Fast Money, Mad Money, you see all kinds of stocks covered during the day. Well I’m here to talk to you about 3 of them that you saw on TV, and tell you what you didn’t hear on TV. Lets see if we can make some money.
First we’re going to look at Linkedin ( NYSE:LNKD ). All of these stocks, Linkedin ( NYSE:LNKD ), Tableau ( NYSE:DATA ), Splunk ( NASDAQ:SPLK ) were covered by Jim Cramer on Mad Money. He says you want to stay away from them for now. I almost want to say forever, but that’s just me. Lets look at this. Linkedin ( NYSE:LNKD ), yes you want to stay away from this stock. It’s under massive distribution, it’s about $110.00 away from ultimate support. BUT, as a trader, here’s a trade that you can make: The low on Friday is 102.81. The stock is now trading at 110.00. So that gives you, from where it is now, to where the low was, about 6.5 percent. If you want to buy this stock what you would do is, you would define your risk. It’s really simple, you just put a stop just a little bit below this level. Then the only way you are losing money on this stock is if it actually goes to a NEW low. As long as it stays above this level then you’re really okay and you can just trade the wiggles and jiggles. This would ONLY be though for a trade. Seriously, I don’t think much of this company frankly, and I’m talking about just what you do, their product, I just don’t know how they make any money at all. And obviously after the kind of pullback that it’s had in a couple of days, 43 percent or whatever, I think a lot of other people are wondering the same thing I am. So ultimately stay away; but you could probably make a little trade out of it.
Okay, Tableau ( NYSE:DATA ). The thing to note here is, massive volume on Friday, certainly heavy volume today, relative to what AVERAGE volume has been. Average volume, back here, average volume was about 1.2 million a day. Here, just today, we have a lot more, almost 7 million, but much lower than Friday’s low. This is still a falling knife though. You look at the weekly chart and this is $37.00 above ultimate support. I’m telling you, on this one, don’t try to fade this. Let the stock do what it’s going to do. It will probably overshoot to the downside; some would say that it already has. I’ve got these Bollinger Bands actually set at three standard deviations. It’s almost like it’s breaking a rule of statistics that the stock trades BELOW the third standard derivation for two days in a row. So this is ripe for some kind of pullback or some kind of “pause that refreshes”. But I’ll give you, actually, the same deal as I just talked about on Linkedin ( NYSE:LNKD ). Use TODAY’S intraday low, that’s Monday’s intraday low of 36.86. The stock HAS to be trading above that level. If it’s not, don’t buy it. And again, it would just be and oversold bounce. Don’t expect too much out of it because this is massive institutional selling.
Splunk ( NASDAQ:SPLK ) is another one. They REALLY got dumped on Friday, even more so today. Once again, the weekly chart shows a stock that looks like it’s about $32.00 above ultimate support. What I mean by that is (kind of tongue and cheek) these stocks just look like they’re going to zero. They’re not. They just look that way. Stocks always overshoot on the downside and on the upside when momentum is really, really strong. This is one of those as well. Ultimately you can make money on this on the long side. You just want to wait for a show of strength. Here, it would be the same deal, the stock needs to stay above 31.57. But know this in all of them: You are trying to catch a falling knife if you’re making this trade. See this little box? This little kind of box right there, the little green box there. Or this one here is a red one; this is a hammer pattern, so is this. It’s a bullish hammer pattern. It comes from the term, “hammering out a base”. Ideally these are what you want to see, something like this, something like this. You want to see this on the bottom of this. That indicates and intraday reversal, where the stock sold off and then couldn’t keep going through the day, had to snap back as buyers came in. We’re not there yet on Splunk ( NASDAQ:SPLK ). Certainly not there on DATA ( NYSE:DATA ). We’re almost there on Linkedin ( NYSE:LNKD ). So between the three of these, this is the one, Linkedin ( NYSE:LNKD ), that is actually showing the better possibilities for making money. The other two are just possibilities with the parameters that I laid out.
3 Stocks I Saw on TV Free Chart