3 Stocks I Saw on TV: TGT, HPE, MCK (March 09, 2016)

by DAN TGT SP-500 TGT HPE MCK 
Every night we watch the same shows, Fast Money and Mad Money. We want to use those ideas to MAKE some money. Now, good trading takes more that just hitting the buy button after the opening bell the each day. So lets go BEYOND the TV screen and check out these 3 stocks I saw on TV. We’re going to look at Target ( NYSE:TGT ), Hewlett Packard Enterprise ( NYSE:HPE ), and McKesson ( NYSE:MCK ), and here’s why: Because the Fast Money guys were talking about 3 stocks that they liked for the new bull market. Bull market, great.

Here’s my little editorial: I’m looking for that bull market. I’m hoping that we find that bull market, but so far we’re not finding that bull market, we’re just having an oversold bounce. Tops are processes though and sometimes those, what look like tops, actually turnout to be just high basing patterns and then will continue to move higher. If that’s the case then Janet Yellen will be proven to be one of the smartest around. Because she’s basically said recently that she doesn’t believe in economic downturns or bull markets coming to an end. She thinks stuff just keeps going straight up. So good for her, I hope she’s right. Back to the stocks here.

Okay, Pete likes Target ( NYSE:TGT ). Now, just look at this objectively, it’s above the 200-day moving average, it’s above the 50-day moving average. Both of those moving averages, you’ve got to squint to see the 200-day, are moving up, so this is a good deal. It’s tough to buy it right here, because resistance overhead is about $84.00 so there’s not a whole lot of upside before, at the very least, you would expect some sideways consolidation. Also, this little Bollinger Band hook down here, these tend to kind of mean something, and a lot of times they kind of forecast is the end of a move. Not the REVERSAL of a move, just the end of a move.

You could see this moving up or you could see it reverse. What I’m suggesting is, this is for a new bull market, that’s great. But it’s not the best time to buy Target ( NYSE:TGT ). We can look at the weekly chart, you can see the stock’s kind of a mess but no matter what way you look at it there’s limited upside from here. So what I would suggest you do is, hope, and hope can be a method sometimes. What I’d suggest you do is you just step back a little bit, hope that the stock pulls back maybe on a bout of market weakness and that’s when you buy Target ( NYSE:TGT ), if you’re into Pete’s theory.

Now, Hewlett Packard Enterprise ( NYSE:HPE ). This is a recent spinoff from Hewlett Packard, it’s kind of trading like an IPO. This is a top right here, if we extend this over this is just now starting to break through to new highs. This is when you want to be really focusing on a stock is after it’s had a chance to kind of do it’s thing, whatever the heck it’s going to do after and IPO. Finally at some point it will breakout. By the way, if it doesn’t breakout then you’ve got no business going near that stock. So you want to buy these stocks when they are breaking out above what I call the enthusiasm high. So that’s Hewlett Packard Enterprise ( NYSE:HPE ), right here; that’s Dan Nathan’s pick.

Now Guy Adami likes McKesson ( NYSE:MCK ). Okay, it’s still trending lower. I could be on board with McKesson ( NYSE:MCK ), but only if this happens, only if the stock starts printing higher highs. I just think it’s too early to be in to this. It’s still trending down, lower low, lower high, lower low, lower high. That needs to reverse and you need to start seeing the stock moving higher.

3 Stocks I Saw on TV Free Chart