3 Stocks I Saw on TV: NWL, JAH, TSLA, AA
TSLA NWL JAH NWL TSLA JAH NWL AA
Every night we watch the same shows, Fast Money and Mad Money. And we want to use those ideas to make our money, right? Well good trading is more than just pushing the buy button the next morning on a stock that you saw on TV last night. I’m here to help you make money on these 3 stocks that I saw on TV.
Today, I want to start with Tesla ( NASDAQ:TSLA ). Now here’s the deal, they’ve had good news, bad news and through it all the stock has just continued to move higher since bottoming in early February. Here’s the deal: On their new car they’ve got a boatload of orders; of course they’re not going to be able to fill for a LONG time. Then we just hear today that their Model 3, which I think they’ve only got like 2,500-2,700 cars out there. It’s a recall; that’s right, they’re taking a mulligan on it and telling their consumers not to ride in the third seat until they get this fixed, because the latch might not hold. Look, I’m not going to dog on esla ( NASDAQ:TSLA ) about this. Frankly I think they dodged a bullet, not that I would expect them to cover up this kind of thing, I think that was a Ford deal if I’m not mistaken. But the thing is, for them to have something like that and not have any fatalities or any body injured on this. That’s a good thing for this company. So I look at this, frankly, as a creditability builder.
However, with that said, I’m also looking and trying to figure out what the next catalyst for this stock to move higher would be, and I just can’t find one. Now, I DO NOT advocate going against the trend. In other words I don’t advocate shorting into an uptrend, I just don’t. I know you can find the top sometimes, just like buying into a downtrend you can find the bottom sometimes. But there’s a reason why they say the trend is your friend, and it’s because it sticks with you a lot longer than you think it would. But here’s the thing, I’m really, really tempted to short esla ( NASDAQ:TSLA ) right at this level and then keep a buy stop right up here. Literally keep a buy stop just right up a little bit above 270.00. It just seems to me when you look at this, we see the big, this looked like a climax high with all this volume, and then on the last three days of distribution it’s all higher than average volume. So that tells me that accumulation has kind of morphed into distribution. I wouldn’t be buying esla ( NASDAQ:TSLA ) on this dip. If you do just make sure you’ve got a risk management plan in place, because I think you’ll probably need it.
Okay, Newell Rubernaid ( NYSE:NWL ). They are buying Jarden ( NYSE:JAH ), Cramer was talking about this in some detail on Mad Money. The upshot is this: He likes Newell ( NYSE:NWL and so do I, half of my containers are in my “bachelor’s” drawer with all of them there. Love Newell Rubernaid ( NYSE:NWL ). He thinks this company can execute when they’ve completed the acquisition and I really can’t disagree. Here’s the thing, this company has a fairly high short interest. Keep something in mind, don’t just look at the short interest and say, “Oh, we’re going to see a short squeeze.” This could seriously be one of those instances where you’ve got arbitrageurs who are short Newell Rubernaid ( NYSE:NWL ) but they’re long Jarden ( NYSE:JAH ). I don’t know whether that’s the case, but I can see that happening. The bottom line, I think Jarden ( NYSE:JAH ), if it starts moving above $60.00, you’re going to see Newell Rubernaid ( NYSE:NWL ) moving above $46.00. Either one of them works for me. I’m just with Cramer though; take Newell Rubernaid ( NYSE:NWL ), take it on this weakness. It’s still kind of technically in this consolidation. But this, to me, looks like a pretty significant bottom. I think ultimately this stock goes higher.
And then the last one is Alcoa ( NYSE:AA ). They reported earnings after the bell. Their revenues came in a little light, but they had an earnings beat. Of course nobody really expected much of them, so when nobody expects much of you, it’s kind of easy to exceed expectations. Still, the stock is down, but it’s down right at the 200-day moving average. I feel like this is a stock that, I’m not an aluminum guy, that’s just me, although I have some titanium in my knees, but I think if you want to be looking at Alcoa ( NYSE:AA ) to buy, this could be your opportunity to buy it, seriously. Because you can see the stock, if you’ve been studying my chart work at all you know that I like these kinds of situations, these kind of conditions, when a stock is running right along the (almost just picture perfect) 200-day moving average, within a big downtrend, the 50-day moving average, almost ready to crossover.
So all we’re looking for is a spark to push that thing higher. We didn’t get it on earnings, but what you are getting is an opportunity to buy this at a low-risk level. So you buy it near the support level and then you keep a trailing stop just right underneath the 50-day moving average. So if this stock is down tomorrow morning, and it probably will, and maybe you’re looking at this video on Tuesday morning, if it’s down here and then it holds, that’s when you can buy this stock. And by the way, if you buy it and it just goes back to the prior days close, that’s a 5 or 6 percent return in a not very long period of time. And if it just goes up to the top of the range, that’s an 8 percent return. So the bottom line is, I think this stock is consolidating. As long as this level holds it’s going to give you a good entry to buy this tomorrow. If it doesn’t hold, by the way, forget what I just said.
3 Stocks I Saw on TV Free Chart