3 Stocks I Saw on TV: VRX, FB, AMZN (February 29, 2016)
VRX FB AMZN
If you’re a hardcore trader like me you’ve got CNBC on everyday; you might not look at it, but you’ve got it on in the background, that’s just what we do. So you see a lot of stock mentioned before the opening bell, during the day, after the opening bell, a lot of information on a lot of stocks. I’m looking at 3 of them today. These are 3 stocks that I saw on TV, that I think I can help you make some money on, or at least avoid losing money.
First of all, Valeant Pharmaceuticals ( NYSE:VRX ). It turns out that the SEC is opening an investigation on this company. This thing is being investigated by SO many agencies you kind of wonder if there is going to be any room for any more investigators in their offices. I’m looking at the weekly chart here and to me this is the one that really matters, because this stock still has plenty of room to the downside. This looks like something that got thrown off the top of a really tall building. It’s up a little bit after hours today, I’m doing this video shortly after the bell, but not really enough to make a difference. If this stock rallies tomorrow, and typically when the news is SO bad stocks will take a dump and then they’ll move higher. That’s what we’re seeing here. If this thing rallies tomorrow I think it’s going to give you a shorting opportunity. I would not buy this stock, if you’re wondering, “Oh, it’s down to test support here. It’s going to move higher.” Again, look at the weekly chart, this stock is not moving higher, other than to give you a better short entry. It has been under liquidation since back here, actually I would say since back here. So this stock is NOT being accumulated. It’s one that you want to stay away from.
Now, I want to look at a couple of the FANGS here. We’ll keep it in the weekly chart. Paul Meeks, who is a pretty well known investor, was talking with Santoli today about Facebook ( NASDAQ:FB ) and Amazon ( NASDAQ:AMZN ), he likes those. So we’ll look at Facebook ( NASDAQ:FB ) here. This is not a trade right now. There’s not a darn thing happening in Facebook ( NASDAQ:FB ), but it’s in a really, really nice uptrend. It’s not at a buy point, it’s not at a sell point, it is at hold point. So if you’ve looking to get into Facebook ( NASDAQ:FB ) you really don’t need to go further than this weekly chart, though we will. What you need to do is just look at the 200-day moving average. It’s given plenty of time, even here, I guess we could say, plenty of opportunities to buy on these pullbacks. If you think that Facebook ( NASDAQ:FB ) is just going to takeoff and never come back to hit this 200-day moving average, then you know a lot more than I do. Ultimately I think this thing will hit, so why not wait? Just follow the stock. Now if the stock does start breaking higher, you get the “can’t help its”, go ahead and buy some. But look at the daily chart, it’s really kind of all over the place. So if we get a weak day, and the way the S&P has been trading I think tomorrow will probably not be a great day, lets just put it that way. So if this stock gets closer to $100.00 I’d say that that’s a stock that you can buy.
Amazon ( NASDAQ:AMZN ), lets look at the weekly chart. I sure like Facebook ( NASDAQ:FB ) a lot more. By the way don’t pay any attention to this I have some far out of the money puts that I’ve sold. I just keep this here to keep me honest. Anyway, the stock is below it’s 200-day moving average, that’s the broad red line there, 40-week moving average, it’s below there. It’s regained it and that’s great, but the 50-day moving average is still above this level. So this is kind of a “no man’s land”, right in here, 50-day price, 200-day, this is not really where you want to be, particularly after the stock has just fallen so much. So ultimately who knows? Maybe the stock goes higher. It’s expensive, it’s been expensive for about 20 years or however long it’s been around. But I’m looking at this, this is not an investment yet. This is one to just sit back and watch. If Paul Meeks wants to be long Amazon ( NASDAQ:AMZN ) that’s great. He could probably adjust his cost basis downward on the next pullback.
Okay, that’s it for these 3 Stocks I Saw on TV. I’m Dan Fitzpatrick at stockmarketmentor.com.
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