3 Stocks I Saw on TV: WMT, IBM, AAPL (February 18, 2016)
If you’re like me, if you’re a hardcore trader, you watch CNBC everyday; sometimes with the volume off, but you do watch it. You’ll see stocks talked about all day long whether it’s Opening Bell, Squawk Box, Power Lunch, you name it, stocks are there. What I’m doing in this series of videos, called 3 Stocks I Saw on TV, is doing just that. I’m talking about 3 stocks I saw on TV and I’m giving you the rest of the story; sometimes good, sometimes bad, but always honest.
Look, Wal-Mart ( NYSE:WMT ); the company came out and lowered forecasts today with their earnings and you can see what happened. The stock is down 3 percent at the close, it was down much MORE during the day. But here’s what really matters. This is the 50-day moving average right here, the red line. I like the fact that the stock HELD at the 50-day moving average, and if you draw a line between all these lows here, this is what you get: you get a nice trendline here. So my suggestion is this: You take advantage of this pullback and buy Wal-Mart ( NYSE:WMT ). Keep a trailing stop a little bit below the 50-day moving average. But what you’ve got to understand is this, Wal-Mart ( NYSE:WMT ) is has already taken a huge haircut. I can’t remember the last time I went into Wal-Mart, it wasn’t anytime recent because I don’t have memory issues. So I’m not a fan of the company, but I am a fan of the stock, the way this thing has worked out. So they took a big haircut, now they’re moving out, the stock came down, formed, at one point anyway, which was kind of a dragonfly doji, a bullish reversal pattern. I will just say this, I think this stock, on this high volume, has printed a meaningful low in this new uptrend, I think you can be a part of it.
Now, IBM ( NYSE:IBM ) is up so much because Morgan Stanley upgraded the stock. Here’s what you want to be looking at: You want to look at the weekly chart, up or down, down. The stock is in a downtrend. I don’t want to buy downtrending stocks. If I DO buy downtrending stocks, I’m going to buy them on WEAKNESS, not on strength. And even then, why am I buying them on weakness? Because maybe I’m just making a little, tiny trade. Or maybe I think the stock is bottoming. But either way I’m not buying them on strength, NOT A DOWNTRENDING STOCK. This is a downtrending stock, there’s NO WAY I’m buying this stock right now. Now it may run up and I’ll look like a fool for not getting in, but this is just not my trade. I’m telling you, it’s a RISKY trade to be buying right now. Morgan Stanley, good for them. But this is a stock that continues to trend lower. If you want to buy it, I’m telling you, WAIT FOR WEAKNESS. And trust me, it will come, it will come.
And then the last thing I want to talk about, yet again, and hopefully for the last time, is Apple ( NASDAQ:AAPL ). It was breathtaking how much time CNBC spent talking about Apple ( NASDAQ:AAPL ); not the merits of the new iPhone, not whether the Dick Tracy watch was going to be good, not about anything else, it was the phone from that jihadi dude that they’re trying to unlock. I’m not going to go into that again, I did the other day. But I will say this, if you want to look a zerohedge.com you’ll see an article that CLEARLY states that Apple ( NASDAQ:AAPL ), SEVENTY times before, has opened the iPhone for the Feds. The point is, this thing is all just a bunch of BS, it’s a publicity stunt in my view, and that makes for a bearish move on Apple ( NASDAQ:AAPL ). That’s what I think. I think the stock will continue to hold here, it’s just prior to this whole ilPhone thing. It’s still been finding a base there. As long as the stock stays above here, if you’re a “Appleonian” you go ahead and keep it. But I’m telling you, if the stock starts drifting below 90.00, then I don’t want to be a part of this thing, because this chart still looks pretty ominous.
As for CNBC and all their talk about Apple ( NASDAQ:AAPL ) and the phone, memo to you guys, get somebody on there who actually knows what they’re talking about; because all the folks that you had on there today couldn’t hit the inside of a barn with a shotgun if they were standing on the inside. The whole thing, I’m just over it.
Those are 3 stocks I saw on TV. We’ll be looking for more tomorrow, but right now Wal-Mart ( NYSE:WMT ), IBM ( NYSE:IBM ), and Apple ( NASDAQ:AAPL ) are 3 that I’m looking at.
3 Stocks I Saw on TV Free Chart