3 Stocks I Saw on TV: HON, MCD, MSFT (March 25, 2016)
HON MCD MSFT
Every night we watch the same shows, Fast Money and Mad Money, and we want to use those ideas to grow our money, right? Well good trading takes more than just punching the buy button the next morning on stocks that you saw on TV the night before. I’m here to help you make money on these 3 stocks that I saw on TV. We’re going to look at 3 stocks today that Cramer covered on Mad Money. He was talking about the CEO’s in his Elite Eight, part of the whole March Madness thing, right?
The first stock that he was looking at is Honeywell ( NYSE:HON ). And the whole idea is, these companies are run by great CEO’s. To Cramer that means a lot, because to investors that means a lot. But we want to look at the technicals here. Honeywell ( NYSE:HON ) is one of his picks here. The stock, in my view, is starting another leg higher. It’s been really choppy for the last year or so, half a year. But that was then, this is now. It would have been nice if this had been more of a volatility squeeze, we’d get more of an explosive move. But just think about this: This was a squeeze, really tight trading, and then it got crushed this one week along with about everything else in the market.
Just from a technical standpoint, after this thing was crushed, this was supposed to rollover, trade down. It didn’t do that. Instead now it’s printing all-time highs. I think you want to be long this stock. Cramer suggests that you buy it on weakness, and that’s fine. I would say, frankly if this thing pulls back $2.00 or $3.00, that’s a good time to be in it; $4.00 or $5.00 would be better. But keep this in mind, this is not for a trade, this is because you want to own Honeywell ( NYSE:HON ), period. If you’re not interested in Honeywell ( NYSE:HON ), if you’re looking just for a trade, like a quick pop or something like that, hey, go buy Amazon ( NASDAQ:AMZN ), that’s going to work.
Another one that he likes is McDonald’s ( NYSE:MCD ). Steve Easterbrook is the CEO there, which is probably better than Ronald McDonald, who looked a little funny anyway. The weekly chart here on Ronald McDonald shows, I think, if I’m not mistaken, I was actually on CNBC fighting over this thing. I think this stock started screaming when they announced that they are going to be serving breakfast all day long. Somebody was saying, there was an analyst on the other side that was saying, “It doesn’t matter, it was a last gasp, kind of a last ditch effort.”
My point was, “Hey man, I like those Egg McMuffins and I would take them all day long. If that was their last ditch effort I thought it was a good one. I thought the stock was going to go up to about 120.00. I was wrong, it’s moving even higher. I still like McDonald’s ( NYSE:MCD ). It’s choppy here, it’s been trending for quite a while, you’ve seen this on the weekly chart. I would look for any weakness, say back to just the bottom of the channel. When a stock is trending sideways like this I don’t like buying right up here, because what I’m essentially doing is, I am predicting that the stock is just going to keep going. It’s just going to run right through here and keep moving. I don’t think that’s going to happen here. So wait for McDonald’s ( NYSE:MCD ) to pullback a little bit.
And then the last one I want to look at is Microsoft ( NASDAQ:MSFT ). Cramer likes the CEO as well. I kind of like the chart. It’s really sloppy right now. But I like these stocks. This is the ultimate large cap stock, right? These guys have a good business model now. Rather than just selling product they’re licensing it, which means that they get to make a lot more money on a recurring basis. Because I don’t know about you, I would never upgrade my software, or Office, or anything else because the stuff that I had worked really well. So they’ve got a different model and that’s working for them. I would say on this, draw a box, here’s your range right now. Anytime you get an opportunity to buy this stock down closer to $50.00, which is also closer to the 200-day or 40-week moving average right here, that’s the time you want to buy this stock.
3 Stocks I Saw on TV Free Chart