3 STOCKS I SAW ON TV (FCX, LULU, HD, AAPL) – May 16, 2016
Every night we watch the same shows, Fast Money and Mad Money, and we want to USE those ideas the grow OUR money. Well good trading takes more than just pushing the buy button, every morning, on the stocks you saw on TV last night. I’m here to help you make money on these 3 stocks I saw on TV.
First we’re going to look at Freeport-McMoRan ( NYSE:FCX ), copper, big dog in the copper business. They were talking about this on Fast Money. Seymour thinks it’s moving higher. Dennis Gartman, to be honest with you, I forget whether he was a little bit bullish or a little bit bearish on it, but he was basically saying, “I just don’t really think it goes much,” whatever direction that is (A Little Bit Country, A Little Bit Rock ‘N Roll). Anyway, I don’t really care so much about THAT as I do the chart. Because what we’re seeing here are some really good technical levels. First of all, you’ve got really good solid support at $9.00. Then you’ve got it again at $10.00 or so. Now the stock is up at 11.00. But look at the higher highs here, now we’ve got what is potentially a higher low and it’s knifed through the 200-day moving average. Look, this is a commodities stock, it’s not a high tech stock. This is the type of move that these commodities stocks make when they’re transitioning from a downtrend to an uptrend. So I think you can be long Freeport-McMoRan ( NYSE:FCX ); not in a huge way. We have a covered call on this over on Option Market Mentor. I think this stock is going to do just fine.
Now, Lululemon ( NASDAQ:LULU ). Pete Najarian and Joe Terranove were talking about this on the Halftime Report, they’re both bullish on this stock, they think it’s going higher. I think Josh Brown didn’t like it as much. So what are we going to do here? As I look at this chart I have two things to say. First of all, this gives great credence to the notion that there is not wisdom in every single chart. Sometimes you look at charts and if you’re going to be really honest you say, “You know what? I’ve got nothing; I have no idea which way this stock is going to go.” For the most part, I think this is one of those charts. The second thing I’m saying here is, $70.00 is your top. The stock is at $60.00 now, so it’s fine to say, “If the stock moves up 15 percent then go ahead and buy the stock.” But what I’m telling you is this, everything is kind of trending lower on a shorter-term basis. And even on a longer-term basis this is just, in my view, I don’t see a lot of upside in it right now, frankly. It’s down below the 50-day moving average, in a bigger way than it has been in the past. I think you can be patient with this stock. There’s absolutely no need to just rush in here and get this.
Now, Home Depot ( NYSE:HD ), they report earnings tomorrow morning. The reason I’m mentioning this stock tonight is because I want to point to levels. Hope for a really, really crappy Earnings report. HOPE that the stock falls down to about 125.00, 126.00, the 200-day moving average. If the stock does that, buy a little bit. And the only reason I’m saying a little bit is, because a lot of times people think when a stock is selling off on earnings, a great company like Home Depot ( NYSE:HD ), “Oh, I wanted to buy the stock at this level. But now that it’s down there I think there’s something wrong with it,” so you don’t really go all in. I would just say, if the stock pulls back, dip a toe, take some stock. And then once it starts moving higher, then go ahead and take some more, because you don’t get much of a chance to buy at the 200-day moving average. Now, on the other hand, if the stock breaks out, we’ll say above 138.00, I think this stock is just going to continue moving higher. This is a great company. I’ll tell you one thing, every time I go into Home Depot ( NYSE:HD ), I can hardly find one of the people with the orange aprons, because they’re always busy.
Okay, the last thing, I guess this is 4 Stocks I Saw on TV; I’ll just mention Apple ( NASDAQ:AAPL ). I’m kind of bored with Apple ( NASDAQ:AAPL ) because I’ve talked about it a little too much for my taste. But Berkshire Hathaway bought a big chunk of this and that’s in part why the stock is up. I would just suggest being careful here because so far this zigzag pattern is in tact, so you can look for some more upside. Whether you’re a big believer in Warren Buffett and his stock picking ability, I guess maybe it just depends what your time frame is.
3 Stocks I Saw on TV