Taking a look at some requests from Twitter (April 13, 2016)

by DAN CSQX AUY S6UX SUN PSA PSX TSO WNR SA CRM AMZN SQ VZ SWHC FB EW W X DJUSST X LUV HA LUV GE LCUT ICE NG GLD NG AUY ABX NEM GG GLD GOLD AGQ ESV RIG AMGN IBB AMGN AMBA GPRO AMBA CMA 
Yesterday I tweeted, I was kind of looking for suggestions and requests for stock tickers and I got a lot of them. And so I thought, “Okay I’m just going to do another video.” We’ll post it. If you see this you’re either a member or you saw it on my Twitter feed @DanFitzpatrick. So thanks for the requests, now lets get through these. I’ll just go through them in order.

Cisco ( NASDAQ:CSCO ). Just stop and kind of squint your eyes here for a minute on this chart. It looks like somebody with a really bad tremor got a pen and a piece of graph paper. It’s just all over the place so there’s no real trend. And even on the weekly chart you can look at this and see. So ask yourself, “If I’m drawing a line across resistance, drawing so you kind of look at these, Okay, where is support on this?” Well, it could be here. Lets just say, generally speaking, kind of around there. “Is this where I would want to buy this stock?” And I would say the answer is, no. We like to buy them low, not high. Particularly if they’re channeling, they’re chopping up and down. So it’s like you buy this stock and you’re not really going to get a great reward right away.
In fact if they report earnings and they’re not that great the stock could pullback a bit. I just don’t find Cisco ( NASDAQ:CSCO ) compelling, and I don’t give a rat’s patootie about the fundamentals on a stock like this.

And I will tell you why: Because there’s a lot of people on Wall Street that are a heck of a lot smarter than me. and they’re a heck of a lot smarter than you too, who know these fundamentals, and they know them really, really well. If the fundamentals were that great, if they were that compelling, the stock wouldn’t be dong this. Think about it, it’s just common sense, the stock wouldn’t be doing this. Now, with that said, how would I be interested in trading this? Frankly, I would rather buy this stock a little bit above 30.00 than I would at 28.23. Because if I’m buying it a little bit above 30.00, that means that has broken out, it’s at a multi-year high. Right now it just has potential. It just has potential. So that’s really my point. You can buy it here, but seriously, you might as well be an economist, you’re just flipping a coin. So wait for this to break out. Give up a little bit in terms of reward, but save a little bit in terms of risk.

Okay, Yamana Gold ( NYSE:AUY ). This was one, hopefully, you got on this last week when this was first starting to break out. It’s had a heck of a move. I will just say, with the stock now closing lower, not by much, but it did close a little lower, I wouldn’t buy it here. But you need to put your stops just a little bit below 3.90 and I would just say this trade is done. This could go higher that’s why I’m not just saying just punch out, sell it at 4.00 and you’re out of there. This has been a heck of a trade. But this stock (boy I can tell this video is going to be an hour and a half long), the stock has had a complete reversal. Gold is pretty strong, this has been a monster stock and for all we know this could go up to 4.50 or 5.00, that’s why I’m saying, use a trailing stop as opposed to just selling. Because I’m not ready to say this is the absolute top.

Starbucks ( NASDAQ:SBUX ). This is still consolidating, it’s just trending sideways, it’s a high base here. I’d rather buy the stock at 64.50 or 65.00 even.

Sunoco ( ASX:SUN ). This is still technically in a downtrend. I’m probably giving you a common theme here. It’s not by design it’s because this is just what I’m seeing in these stocks. Oil and gas refining and marketing, that sector hasn’t been the greatest. Here, above the 200-day moving average would work, while I’m doing this I might as well just go off the map; not PSA, buy that by the way, but that’s been a buy for quite a while, PSX; others in this space, sideways consolidation, this is my favorite, Tesoro ( NYSE:TSO ), some of the folks in the forum like this company. I think the bloom came off the rose here when it fell below the 200-day moving average. So this isn’t working.

Western Refining ( NYSE:WNR ). This might be working, but you see what I mean. Look at some of these other energy companies that are really doing well and the refiners just are not really participating. So I just think if you’re going to be in the energy space, look at Halliburton or Slumber J. Those are just right off the top of my head, I’m not even going to look at the chart, they’re both perking up.

Seabridge Gold ( NYSE:SA ). Nice volatility squeeze, wasn’t it cool how so many of these stocks just started popping out of these squeezes. Well, Phase 1 is the breakout from a squeeze, lets go ahead and do it here so you can get this for the rest of the video, here’s the volatility squeeze. Phase 1, and this is just my method of making sense out of volatility expansions. So you have the squeeze. Phase 1 is the initial squirt, it squirts out of here. And then Phase 2 is when it stalls out and then it pulls back. And the idea, the hope is that maybe if this is the breakout level here the stock doesn’t come back down through the breakout level, but instead stalls somewhere above there, and that would be Phase 2 down where ever it stalls out. And then Phase 3 is a continuation. We don’t know whether we’re going to get Phase 3. This Phase 2 could be Phase like oh. So what I’m saying is now is this first Phase, this first move is over, and now you just need to let this thing settle out a little bit.

CRM ( NYSE:CRM ). Resistance right there. I like the company, this was an awesome opportunity to buy it, but generally speaking just look at the moving averages. Sideways, this is not in a trend, but if I had to buy it or sell it I would buy it, just because I’m feeling saucey.

Amazon ( NASDAQ:AMZN ). They report earnings I think on the 21st, if not it’s a few days after that. I think this stock is going to be testing new highs because of the way the market is acting. Probably even before earnings, so I think you want to buy that.

Square ( NYSE:SQ ). I hear a lot of talk about this stock. It’s an IPO. It fits my IPO strategy, which is trade the stock anyway you want, but keep an eye on the initial high. Here it was on like the first day of trading. But you keep an eye on the initial high, here it was 14.78 but we’ll call it 15.00. So the stock trades down, it trades down, it trades down. And like I said I’m not saying you just avoid the stock, do whatever you’re going to do. But this is a strategy that works so many times. You wait until the stock pushes through it’s initial, what I call enthusiasm high, where everybody says, “I’ve got to get this stock.” It pushes through it. A lot of times even if it goes higher it will come back, and it will come back and kind of fart around in this area, right here. But when the stock is up here, hitting new highs, everybody’s a winner. Everybody. There’s not one person who owns this stock who’s losing money. So when a stock starts breaking to new highs after it’s consolidated for a while, there’s no resistance.

Verizon ( NYSE:VZ ). I think this stock is kind of busted. Great dividend, but just today it gave up like a quarter of that dividend. So I wouldn’t want to be in Verizon ( NYSE:VZ ). And certainly if they buy Yahoo I definitely want to ditch that.

Smith & Wesson ( NASDAQ:SWHC ). I view this as kind of a broken trend. The thing has been front-loaded forever because of all the things that are going on in the world. A lot of folks are stocking up on guns, besides me. But as long as the stock stays above the 200-day moving average I think it works. You are kind of close to a buy point here. You think about this, from the high here the stock has lost a quarter of it’s market cap. So the uptrend is in tact, just think about it, the uptrend is in tact, we want to buy uptrends on these pullbacks. So here, we got this pullback, I just need to see some evidence that this is support. I don’t see it yet, I don’t see it. In another couple days, maybe that’s when we get the evidence, but right now it’s drifting lower. However, I’ll tell you this, gun to head, pardon the pun, buy or sell, I would buy it. Simply because I want to be true to my method, which is buy uptrending stocks on pullbacks, that’s what this is doing. We just don’t know if the pullback is complete yet.

Facebook ( NASDAQ:FB ). I think today’s big wild swinging day was some kind of a weird climax bottom actually. It just seemed like the stock wanted to sell off and then it didn’t. And I know that sounds weird, it’s like a bottom. I’m talking on a real short-term basis. I could see this stock drifting sideways right into earnings. I wouldn’t be holding it over earnings because that’s not what I do, particularly Zuckerberg’s company, but it’s a method.

Edwards Lifesciences ( NYSE:EW ). I remember mentioning just a couple days ago that this is a weird thing where this stock pops up so much, so high, and doesn’t pullback. So you say, “Oh I know because I hear, Cramer talks about this on CNBC.” Steve Grosso I’ve heard mention it. Guy Adami has mentioned it. I know I mention it in just a little bit different way. But after something like this you want to wait like three days. Let the enthusiasm wear off. Let all the chuckleheads come in here and buy this stock at a really high price. Wait for all those dudes to be done and then you get it on the pullback. So we’re waiting, “Oh yes, I’ll be able to buy it lower. Well crap! Maybe I won’t be able to buy it lower. Oh yes, I will be able to buy it lower.” You see what’s happening one day after the next, after the next. This stinking stock is not coming back down. It’s not giving you an opportunity to get in. “Oh, maybe now’s my opportunity.” Golly gee, it peaked at $108.00 and now it’s down $3.00. Big woop! And then nothing, and then now we’re here.

So this is a stock, frankly, it hasn’t let you in. It hasn’t let you in. I’m looking at this and I’m wondering if this is just going to continue to move higher. So this is what you do: if you’ve been looking for an opportunity to buy Edwards Lifesciences ( NYSE:EW ), I think you’ve got to go. I think you’ve got to do It, and I think that you’re going to be happy that you bought if the stock continues to move up. If you keep a trailing stop just a few bucks below, just a few bucks. You don’t have to go all the way below 100.00 to put a stop in, because the whole reason you’re buying, think about it, the whole reason you’re buying is you think the stock is going to continue to go. You don’t think it’s going to come back down and start filling that gap. So you are buying, and you’re going to keep a tight stop. Because if the stock does start falling over now your analysis has been nullified, you need to get out of that trade. So that’s how I would trade Edwards Lifesciences ( NYSE:EW ).

U.S. Steel ( NYSE: X ). This has been a crowd favorite at Stock Market Mentor. It’s still working guys. I’ll say it again, this is why you want to be setting trailing stops. Be prepared to give some of your profits back in return for staying in the trade a little bit longer. Be prepared to give some of them back. Steel is working. It’s working really well. This is the U.S. Steel Index ( INDEXDJX:DJUSST ), if only it were tradeable, but it’s working, continues to work. Cramer, the other night on Mad Money, I think it was on Monday night, was talking about steel, the whole sector. And he mentioned several names. U.S. Steel ( NYSE: X ) is a big one. It works. I won’t get into the others because I have to be at work tomorrow.

Southwest Airlines ( NYSE:LUV ). Somebody wanted to know about this. I just featured this in Wednesday’s Strategy Session. The other airline stocks, a lot of them like Hawaiian Air ( NASDAQ:HA ), it’s drifting up. You can buy this one, it still looks like it just took off from the airport, just drifting higher it seems like every single day. LUV ( NYSE:LUV ) looks like it has a little more potential just to start running because it’s popping out of a squeeze. But either one of those airlines works.

General Electric ( NYSE:GE ). This is almost like a cup and handle here. I’m not a big GE ( NYSE:GE ) guy because it just doesn’t have that high of beta, it doesn’t really move that much. Divided, a 3 percent yield is okay. I would say if you’re owning this stock this is exactly why you are owning it, because of the dividend. Otherwise, GE ( NYSE:GE ), really? GE ( NYSE:GE ) isn’t going out of business. So a 3 percent dividend, I can think of worse things.

Lifetime Brands ( NASDAQ:LCUT ). Honestly, this is so illiquid, didn’t even trade 100,000 shares and that’s massive volume compared to where this usually is. I can’t even really cover this responsibly. I would just say short interest is a little high, be careful. Certainly if you’ve got to go long or short go long. Just keep a trailing stop and be prepared to have a wild ride.

ICE ( NYSE:ICE ). Sideways, I don’t really see this doing anything. If it starts moving back above say 245.00, then I think you want to buy that.

NovaGold Resources ( NYSEMKT:NG ). Phase 2, volatility squeeze. I talked about this earlier, this type of thing. You get the initial breakout from a squeeze. Then Phase 2 is the pullback. We’re looking for some kind of support there. And then we want this stock to move higher. I’m telling you, as long as gold doesn’t start breaking down below here, you’re going to see these gold mining stocks continue to move. Because this is a commodity, it’s not a single stock and it’s traded for a lot of different reasons. So just the condition of gold, the condition of the chart above the 50 and the 200-day moving average is going to make people really happy to be owning gold. And so NovaGold ( NYSEMKT:NG ) is one of them. Again, Yamana ( NYSE:AUY ) is one that’s worked. ABX ( NYSE:ABX ), they’re all working. Newmont ( NYSE:NEM ), that’s another Phase 2. Are you seeing a theme here? Breakout is Phase 1, and I cover these all the time in Stock Market Mentor, we’ve got a lot of squeezes going. Phase 2 is the pullback and now we’re looking for Phase 3. I could go on and on ( NASDAQ:GOLD ). They’re all kind of doing the same thing.

Let me move on here to silver. Silver printing new highs in this trading range. This is just at the top of the range, it’s Ultra ( NYSEARCA:AGQ ), it moves pretty fast. I wouldn’t be buying it here. I just have to wait for it to pullback.

Ensco ( NYSE:ESV ). I covered this in the Strategy Session. This is a resistance line here, but I don’t think you want to buy it here. It had a big move on Tuesday. Wednesday it still closed up barely. But I think you just want to let this settle in. Also, squint your eyes and tell me what this chart is looking like to you. I’ll tell you what it’s looking like to me, this is still in a downtrend. This is really important that you have this type of discipline to say first of all, is the stock in a trend? Answer, yes. By the way, if the answer is no it’s not in a trend, okay, next question, where’s another stock? You want to be in trending stocks. If they’re not trending why do you own them? Is it some flipping pride of ownership? You want to be making money. Your stock that you’re owning needs to be trending up. Or consolidating withing a broader uptrend. But this is not trending higher. So if you’re buying this you are anticipating it’s breaking out. The only way I would do that is really if I saw another low and then I saw it breakout. Then you say, “Okay, I’m one of those smart guys that picked the bottom.” I wouldn’t do that.

RIG ( NYSE:RIG ), still forming a base here.

Amgen ( NASDAQ:AMGN ). Biotech, so many of these things all did the same thing. IBB ( NASDAQ:IBB ) had that breakout last week. Then a three day pullback. And now all we need to see is a move back above 290.00. I think you’re going to see stocks like Amgen ( NASDAQ:AMGN ) absolutely screaming for the ceiling. I think this works.

Okay, a couple more. Ambarella ( NASDAQ:AMBA ), also in a basing pattern here. Watch for a move above say, $48.00. But for some weird reason, and I think it’s because we’ve got a low, a higher low, a higher low still and an uptrending 50-day moving average. For some reason I would say, yes, I would buy this stock right now and just keep a stop a little bit below that. And you’ve got to think, they don’t report earnings until the end of May. So I think this stock has room to go to the upside, particularly since GoPro ( NASDAQ:GPRO ) is breaking out. GoPro ( NASDAQ:GPRO ) isn’t their only customer, but they’re a pretty big one. So with GoPro ( NASDAQ:GPRO ) moving higher I think you can do Ambarella ( NASDAQ:AMBA ), like right now.

Comerica ( NYSE:CMA ). Financials are going, regional banks, thanks Dodd-Frank, the regional banks are getting screwed. But this is still in a downtrend. I used to love Comerica ( NYSE:CMA ) when it was moving higher. Here, not so much. I didn’t like anything back then. I don’t really like this right now because it’s still lower lows, lower highs. It hasn’t really shown enough, you’d really want to see this trading above the 200-day moving average.

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