3 STOCKS I SAW ON TV – BABA, TSLA, JPM
BABA TSLA JPM
Every night we watch the same shows, Fast Money and Mad Money, and we want to USE those ideas the grow OUR money, right? Well good trading takes more than just pushing the buy button, every morning, so you can take the stocks you saw on TV last night. I’m here to help you make money on THESE 3 stocks I saw on TV.
We’re going to start with Alibaba ( NYSE:BABA ). After the market closed SoftBank reported that it’s selling 7.9 billion dollars worth of Alibaba ( NYSE:BABA ) stock. They own 30 percent of the company. This only takes them down to 28 percent. Wow! Eight billion dollars knocks them down from 32 to 28 percent of the company. I sure wish I was SoftBank. Anyway, so then the question is, what’s up with this? Is this the time to sell? Nathan was yucking it up (and I was too, actually), about how dumb this makes Yahoo ( NASDAQ:YHOO ) look, because they’ve had big a big stake in Alibaba ( NYSE:BABA ), it’s like the one thing that they’ve done right this century. So what are you going to do with that? I don’t care about Yahoo ( NASDAQ:YHOO ). What I care about is Alibaba ( NYSE:BABA ). Here’s the thing to remember: They’re selling 8 billion dollars worth of stock, somebody’s buying it, and it’s not Billy Bob and Jethro Portfolio Management Company. Some big money is buying this stock. Also, not exactly in an uptrend to where you can say SoftBank is really taking huge profits. I don’t know what their cost basis is and don’t care, they’re selling. The point is somebody is buying this, and this is like big news, “Oh my gosh! Eight billion dollars worth of stock is being sold.” The stock is down to $80.00. I think this is a stock that you can be buying here.
Okay, then they were also talking, on Fast Money, about Tesla ( NASDAQ:TSLA ). Whether the company is going to be able to meet its manufacturing goals. Basically whether they’re going to able to make enough cars to satisfy all the demand. It’s one thing is everybody wants your product. It’s quite another if you can actually deliver that product to everybody. So what’s up with that? I mean this honestly, I really don’t give a rip whether the guy, I forget his name, on CNBC says that Tesla ( NASDAQ:TSLA ) can meet their goals or not. Tesla ( NASDAQ:TSLA ) trades the way Tesla ( NASDAQ:TSLA ) trades, which is a little bit unpredictable. And since this February low it’s been kind of one of those buy the stock on dips even though the fundamentals stink. What I think you’ve got to do with Tesla ( NASDAQ:TSLA ) is, look at in the context of this box, or maybe this one; and say, no matter which way you cut it this is not a good entry point for this stock. If you’re a Teslonian and you want to buy this stock, that’s great, good for you, it’s above the 200-day moving average. I’m just saying, from a trend standpoint there’s is none. Flat 50-day. Flat 200-day moving average. The stock has been on both sides of the 20-day moving average recently. This is a stock where you really have no edge. So if you’re going to buy Tesla ( NASDAQ:TSLA ), buy Tesla ( NASDAQ:TSLA ), live and die by the sword.
Now the last thing. Rick Ross or Rich Ross, I forget his name, technical guy for some company, again, I forget that too, was on Fast Money, basically he’s bullish on financials. The yield curve is flattening. The Fed is probably going to raise rates and so he’s bullish on financials and was showing the S&P Financial Index. So I’m looking at his idea and he was talking about BlackRock; Finerman noted that, I’m not really sure why you’re on to that because it’s not really a financial company it’s more market related. And so okay, that’s all well and good, everybody has their opinions. I’m just looking at the different financials, trying to plan my own trade. Because I don’t really care what somebody else thinks. I want to know what I think. And the only way I can THINK is by trying to take some independent thought here. And I want you to do that, certainly watch my videos, hopefully. And by the way, thank you for doing so, because you are now. Caught ya. But then I want you to use your own opinion. Because I don’t know everything. I get stuff wrong all the time, but I’m doing my best. You need to do your best too.
And this is what you do: Okay, JP Morgan ( NYSE:JPM ). It’s a financial company. If the Fed starts hiking rates, even one time, financials are going to go, they’re going to go higher. JP Morgan ( NYSE:JPM ), not at the best point to buy, you can see the zigzag. This is really up at the top of the range. So what you do is, make your trading setup in advance. And that is, if the stock falls back to the 50-day moving average you go ahead and consider buying that stock and I’ll show you how to do it here on TC 2000 (I’m showing you this; I’m not hawking TC 2000, I’m just showing you what I do. I have no financial upside in this, I’m just showing you what I do). I want to be buying this at the 50-day moving average. So I’m setting a price alert where the moving average, in relation to the price history, is basically above the stock price, and I want to set that for a month. So when the price goes below the 50-day moving average I’m going to get a little alert and it’s going to say, “Buy point?” Then I’m going to look at this and decide whether I’m going to buy or not. That’s how I trade this kind of stuff. You can use these types of alerts, and you’re trading software has them too, you just have to get into the habit of using them.
Anyway, that’s my take on Alibaba ( NYSE:BABA ), Tesla ( NASDAQ:TSLA ), and JP Morgan ( NYSE:JPM ). I hope it works for you.
3 Stocks I Saw on TV Free Chart