3 Stocks I Saw on TV: TSLA, AAPL, LVS. (March 01, 2016)
TSLA AAPL LVS MPEL LVS
If you’re a hardcore trader like me you probably watch CNBC every day. You see tickers coming at you all day long, all kinds of stock you see on TV; before the bell, during the trading hours, after the bell, whatever. I want to look at 3 stocks that I saw on TV that got a lot of coverage today. Lets see if we cant’ make some money.
Lets start with Tesla ( NASDAQ:TSLA ). During the day it was reported that Citron Research was short this stock. They put out a paper on that, just Google it, it’s all for free. They’re already short the stock so they hope you short along with them. Look, I think this stock is going lower. They’re suggesting a $100.00 haircut over the year and that’s on a supply and demand issue, and that isn’t the stock that they’re talking about, it’s the cars. I don’t know about that, I don’t know whether that’s right or wrong. I know that the stock is really, really expensive anyway, so this is not exactly a valuation trade. Basically the stock loses money, and so the company loses money, but they make awesome cars.
So here’s the thing: I think this stock goes lower, I think you actually can short it, but I don’t think it’s going to quite as easy as you might think. This is a really obvious trade, support at 200.00, a break, big volume, big volume reversal, a move up to the 50-day moving average to $200.00. What could be easier? Short this pig right now. Consider covering at 150.00. It’s all good, we should make tons of money sometime between now and next Tuesday. When I look at a trade and it’s that obvious to me, I’m not so self confident that I think that I’m the only one that sees the obvious. And the obvious trade tends to be the wrong one. So here’s what I would suggest: Go ahead and take a short position in the stock, but take a small one, because my suspicion is this is going to be pretty volatile.
But if you look at the weekly chart, this is a lower high. This does look like a big topping pattern. And, just overall, this is a stock that looks like it needs to go lower. But again, don’t get sucked in like you’ve got some great information that nobody else does. Again, Citron’s Research is free, and there’s a reason for that, because they front-run their reports, so these guys are already making a ton of money. You can bank on that. Again, nothing wrong with that, it’s just that you’ve got to know who you’re dancing with. So you’re dancing with somebody who’s already short the stock and I’m saying, technically, you can join them on that short, and you’re probably going to make good money, it’s just not going to be straight down, it will be choppy.
Apple ( NASDAQ:AAPL ), they got a lot of news today; it’s still the encryption thing, the hearing whether they’ve got to “de-encrypt” that phone from that jihadi guy. I don’t really think that this implicates the price of the stock. I just don’t. I saw Guy Adami talking about it on Fast Money, noting that he really doesn’t see a way the company comes out a winner, long-term really or short-term. I think he’s right about that, but just keep something in mind, this is a real bullish move. And it sure as heck didn’t move this way because people are looking at the company saying, “Oh boy!” They’re fighting the FBI over this encryption thing and I don’t think they’re going to have to break into that phone, which means that all my stuff is really, really secure, just in case the FBI or the NSA wants to get at it. I don’t really know anybody who feels that way and I doubt you do either. What I’m saying is, that news is really interesting, but it doesn’t have a darn thing to do with a the price of the stock. Right now, support is holding, $93.00 is the floor, but I would really say like 95.00 kind of in the middle here. I think for the first time in a long time Apple ( NASDAQ:AAPL ) is actually a stock that you buy (man, I haven’t said that in months).
Las Vegas Sands ( NYSE:LVS ). This closed higher today, big move above the 200-day moving average. Melco ( NASDAQ:MPEL ) revenues declined less than they thought, so Las Vegas Sands ( NYSE:LVS ) screams. MPEL ( NASDAQ:MPEL ) here, (Melco), moves up, still in a downtrend. Las Vegas Sands ( NYSE:LVS ) looks now to me like this is a breakout. I think you could buy this on any kind of a pullback. Just keep in mind, on the weekly chart, the trend is still essentially lower. But this is a meaningful move above the 40-week or 200-day moving average, which is the first time that’s really happened since 2014, actually when the stock was rolling over. So we could have seen the bottom in Las Vegas Sands ( NYSE:LVS ). I think it’s okay to buy now. Take a little bit now if you have to chase it, but you’ll probably wind up getting it $48.00 or so on a weak day on a pullback.
3 Stocks I Saw on TV Free Chart