3 Stocks I Saw on TV: CSX, FB, AKS, CLF, VALE (April 12, 2016)
CSX FB DJUSST X CLF STLD VALE CLF VALE
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 last night on TV. I’m here to help you make some money on theses 3 stocks I saw on TV.
First up we’re looking at Csx ( NASDAQ:CSX ), railroads. They reported earnings after the bell. They were like brutally horrible; they just stunk up the joint. Revenues were FAR worse than analysts expected. They’re analysts, what do we expect? So earning were really, really bad. The company expects their 2016 earnings to decline, yet the stock is up after hours. Lets look at this, on the 5-minute chart, right after the numbers were reported, and it wasn’t huge volume. This is actually the point though, you look at the intraday chart in the badlands of trading, after hours, and the stock didn’t take a pounding. Over 12 million shares traded.
Typically that’s, at least over the last couple of weeks, that’s about the average price. So you’ve got 10 million shares traded, the company reports brutally bad earnings, and the stock is actually up. I like this stock for that reason. If you look at Monday’s intraday low of 24.36, that seems to be pretty solid support. I think you can actually be buying this stock right now, and not for a trade, this would be to get in a position on a stock that’s pulled back. I think you put a stop just a little bit below this last low and then look for this uptrend to continue. You had a little trend break here, and now you’ve got support here. This is why you’re in this stock. If it falls into the red box you don’t WANT to be in that stock, which is why that’s where you’ve got your stop.
Now, next up, Facebook ( NASDAQ:FB ). Mark Zuckerberg held their annual F8 conference today. And they’ve got new bots, so his deal is, and I’m not really a “Facebookian”, but I’m probably, apparently the only guy on the planet that’s not. I don’t want people to have my personal stuff. Anyway, they’re introducing Messenger for businesses. So now if you contact businesses through Facebook ( NASDAQ:FB ) you can chat with a real live bot, which means that it’s kind of like almost talking with a real person, which just sounds awesome, not. Anyway, so what are we going to do with the stock here. I think this stock moves higher into earnings. Facebook ( NASDAQ:FB ) reports earnings two weeks from tomorrow. I guarantee you this stock isn’t going to be at 110.00.
I could see this stock starting to trade higher. Right now, in the short-term, if you want to take this stock right now before earnings, just keep a pre-earnings stop below the 50-day moving average, 108.00, something like that, and anticipate the stock to go up. Into earnings are you going to hold it over earnings? Seriously, I cant’ tell you that because we’ve still got two weeks of trading to go. So there is absolutely no way of knowing that. But for now, I think this is going to work on the long side, right here, right now.
Now, Cramer was talking about steel on Mad Money. And he really likes it. You can see the market has liked it for quite a while, so I will just kind of go through some of these stocks instead of fixate on any specific one. We’ve been in these in Stock Market Mentor for a while, since they really broke out. So U.S. Steel ( NYSE:X ), he likes this one, I do too, it’s trickling right up along the upper Bollinger Band. This is the big dog in the industry. As long as this trend stays positive, as long as it’s continuing to make higher highs and higher lows, fine. Cliff’s Natural Resources ( NYSE:CLF ) is the one that I’ve been trading. Frankly, because I like the price pattern even better. It was in this volatility squeeze around $3.00, broke out. Boom! And has kept going. It’s a 33 percent return in a few days. Not too shabby.
I think Cliffs ( NYSE:CLF ) works. I’ve liked it better then U.S. Steel ( NYSE:X ), but it would be tough to enter right now though, but stay long. Steel Dynamics ( NASDAQ:STLD ) also works. Vale ( NYSE:VALE ), this works well too. Between all of these that I covered, which ones do you think we’ve been on REALLY, at Stock Market Mentor? My bet is that one, Cliffs ( NYSE:CLF ), and that one, Vale ( NYSE:VALE ). The others are covered, that’s fine. But the bottom line is, these are the ones making the money. We want to be long stocks that are making us money. If they’re not the RIGHT stocks to be in, “Oh, they’re expensive.” Or, “Oh, business is declining.” Or whatever the case may be. If the stock is going up, I want to be long that stock. I don’t want to be short really in this market so I don’t really care so much about that right here, right now. But for steel, these are going up. I want to be long these names. I think you should be too.
3 Stocks I Saw on TV Free Chart