3 Stocks I Saw on TV: HAL, BHI, AGN (April 06, 2016)
HAL BHI AGN
Every day we watch the same shows, CNBC, Fast Money, Mad Money, and we want to use those ideas to make some money, right? Well good trading takes more than just pushing the buy button the next morning on the stocks you saw yesterday. We don’t want to do that. You’ve got to get the right entries and really know what you’re doing. So lets look at these 3 stocks I saw on TV and see if we cant’ make some money.
We’re going to start with Halliburton ( NYSE:HAL ) here. The Department of Justice, imagine this, sued Halliburton ( NYSE:HAL ) and Baker Hughes ( NYSE:BHI ); they don’t like their merger deal for various reasons. I don’t discuss the merits of the case because I’m not competent to do so. But I can discus the merits of the chart and I feel I am competent to do that. So lets go do that. Look at this squiggly line here, this is the 200-day moving average. Resistance, not quite there, not quite there, not quite there, but generally speaking this is kind of defined resistance all the way down including here. And now, Boom! We’re right there at about $37.00.
Now, I can look at this and find all kinds of patterns, “Oh look, it’s a double bottom, right here. Oh, it’s a ‘W’ pattern.” All of those are valid patterns. I’m just looking at it this way, I’m going really more short-term, this has been trending sideways for a while now. This is a nice consolidation. If we see oil, forget about this merger for a second, everybody else is; if oil starts trading higher, and it is, it’s above 35.00, 36.00, 37.00, maybe it’s up a little bit. We could see Halliburton ( NYSE:HAL ) breakout above the 200-day moving average. If it does that I think this is a stock that you can buy.
I hadn’t planned on looking at the other side but I will. Baker Hughes ( NYSE:BHI ), this chart isn’t as clear. You see the big move today, almost 9 percent. But think about it, I have no edge there, you have no edge here, it’s still trading in a range. And guess what? Everybody kind of knows the same thing. So there’s no edge. If you’re trading a stock like this you need to be buying it, you don’t want to be selling it. But also, ASSUME, even though it might not come to pass, assume that the stock is going to stay in this range, because this is where it has been for a while. Between the two of them I’ll take Halliburton ( NYSE:HAL ) any day (and that doesn’t even have anything to do with Dick Cheney).
Now, lets look at Allergan ( NYSE:AGN ). I’m pretty sure I mentioned this in yesterday’s 3 Stocks video, and I noted that the time to be buying the stock was on a breakout above that intraday high of 238.94. So sure enough this morning, that’s 238.94 right about there, right? So you get that first thing in the morning, and then the stock essentially stays up all day. I think, for a trade, you’ve probably got most of it, but this stock is still kind of reverting to the mean. The DOJ kind of caught everybody by surprise when they moved the goal posts, but it’s probably not the last time that’s going to happen. Look for a little more upside here. But I really kind of have a hard time believing that Allergan ( NYSE:AGN ) is just going to bounce right back and be back to its old level here. So really just kind of treat this as a little bit of a gap filler, maybe 250.00, 255.00, something like that. But if you jumped on this idea that I presented yesterday, I would just suggest making sure you have a trailing stop.
3 Stocks I Saw on TV Free Chart