3 Stocks I Saw on TV: AAPL, AMZN, AVT (April 28, 2016)
Every night we watch the same shows, Fast Money and Mad Money. And we want to use those ideas to grow our money. Well good trading takes more than just pushing the buy button, the next morning, on the stocks you saw last night on TV. I’m here to help you make money on these 3 stocks I saw on TV.
First of all we can’t really talk about TV unless we talk about Apple ( NASDAQ:AAPL ). Carl Ichan was on CNBC letting everybody know that he has completely sold his stake in Apple ( NASDAQ:AAPL ). Now, it’s interesting, if you remember, he was the one that was on CNBC letting everybody know that he had a MASSIVE stake in Apple ( NASDAQ:AAPL ) after he, of course, owned the stock. Nothing against the law about this. I don’t think it’s unethical, it just kind of happened. And if followed along, well you were like one step behind. He basically sucked a lot of people in AFTER he got into the stock; and their buying pushed the stock higher. Now the stock is rolling over and he’s been out for a bit. Now that he’s finally out he lets everyone know.
So what happens? You’re going to get more of a reflex selling from traders, from those same retail folks who bought because Carl was in. They are now selling because Carl is was out. Lets get away from that and just think about this: This is a stock that has been rolling over for a while. I guess it’s ripe for a rebound. But here’s the thing: I know a lot of people that are still big Apple ( NASDAQ:AAPL ) enthusiasts, even because they might have a car in the future. That is not the reason to own this stock. In a nutshell here’s the deal: If you’re one of these “Appleonians,” if the stock starts trading to a new low you want to get out. If the stock rebounds a bit, then you want to get out there as well. I just think if you’re owing Apple ( NASDAQ:AAPL ) you’re kind of in jail right now.
Okay, Amazon ( NASDAQ:AMZN ). The blue little arrow here, this is where this stock is trading. They reported blowout numbers, and the stock is up a lot. Here’s the deal with Amazon ( NASDAQ:AMZN ): This thing is up so much. You look at three standard deviations, I could probably put this thing out to four standard deviations and it would still be outside the Bollinger Bands. This is a stock, anything could happen, it could gap and just continue to move higher, but I just kind of don’t think so. I think this is a stock that you want to be selling in the morning. Whether you short it or not, that’s your deal.
But if you look and see what happened to Facebook ( NASDAQ:FB ). Facebook ( NASDAQ:FB ) actually traded up for a while in the morning. It really held in above the opening low here, I’ll call it, until afternoon. So this stock was hanging in there pretty good. But ultimately all this buying dries up and then it’s just profit taking Thursday. You could see the same thing with Amazon ( NASDAQ:AMZN ) tomorrow, on Friday. So if you’re long Amazon ( NASDAQ:AMZN ) I think you want to be taking profits. Unless you’re holding something for long-term capital gains treatment, there’s no reason for you not to sell it when you’ve made all this money. You just say, “Mr. Market, thank you very much.”
Okay, Avnet ( NYSE:AVT ). They reported a quarter that was, lets just say, less than enthusiastic. Their revenues really kind of got crushed pretty good. Cramer had the CEO of the company on Mad Money, who was kind of explaining things a bit. Cramer likes the stock, he wants to stick with it. He likes it, but I’ve got to tell you, you really need to just follow back on the chart. The dividend isn’t an issue so there’s no real reason to be buying this stock. If you want to buy the company then talk to Warren Buffett, he’s the guy that buy companies, the rest of us just buy stocks. This has been drifting sideways for quite a while. This is not a buying opportunity. And even if you’re looking to be trading a channel, let the stock do this, let it come down to the bottom of the channel. Right now, you’re seriously in no man’s land. You don’t want to be there. So I wouldn’t take advantage of this selloff to do anything other than say, “Okay, well we’ll check that box. Lets go to another stock that might be more interesting.”
3 Stocks I Saw on TV Free Chart