3 Stocks I Saw on TV (GPRO, SQ, WYNN) – (May 5, 2016)
GPRO TWTR GPRO SQ WYNN
Every night we watch the same shows, Fast Money and Mad Money, and we want to USE those ideas to grow OUR money. Well good trading takes more than just pushing the buy button, every morning, on the stocks you saw last night on TV. I’m here to help you make money on these 3 stocks that I saw on TV. We’re going to look at more earnings trades here.
First of all GoPro ( NASDAQ:GPRO ). They reported a Q1 loss, and the stock’s down. You might be looking at this saying, “Hey man, this is my opportunity, I can buy this puppy at $10.00 or so.” And you would be right, you’ll probably be able to. But they delayed the release of their drone. The thing that ultimately I would love to take a shot at if somebody’s flying it over my backyard, they delayed the drone until the holiday season. Lord knows what can happen between now and the holiday season on the consumer side. So that is no reason to be bullish about the stock, and I think that’s one of the reasons why this is down. I think you’ve got to steer clear of this, and just remember it looked like Twitter ( NYSE:TWTR ). You’ve just got to steer clear of this. Go get a Hero camera, I just bought one recently. Once I take it out of the package I’m sure I’ll like it. Go buy a Hero camera with the money that you save from NOT buying the stock.
Okay, Square ( NYSE:SQ ). This company reported earnings, they actually beat, and they gave good guidance. The 50-day moving average was holding, right? And then the stock trades down. This is a stock that I really wouldn’t want to be buying either. Now, depending on how this stock closes on Friday, I may have a different assessment on Monday. Because apparently the buzz is pretty good for this company. This was the IPO price right here. The stock poked up above that and then now it’s fallen substantially below. I would rather, just from a long-term standpoint, I would rather wait until the stock was up at new highs before I really started getting interested in this stock, in holding the stock. But on a short-term basis, you can go ahead and trade the swings, but use a 5-minute chart for that, or a 1-minute chart, or a 10-minute chart, something like that. And just look to maybe buy this for a quick little hit tomorrow. In this kind of market this is not the kind of trade that you want to make lightly.
Now it’s going to be down. If the stock opened up tomorrow where it is right now then this is a gap of over 10 percent. You’re probably going to get a short-term bounce here in the morning, for you active traders. You can’t count on that for sure, but you can also definitely count on the fact that if the stock were to rally back up here there would be a ton of selling pressure from all the folks who decided they were going to be smart and buy this stock, particularly when it came down to support here, they were going to buy this stock before earnings and get in on a good deal. One thing, for you budding technicians, support and resistance on a chart, in fact the chart itself, does not matter at all when a company reports earnings. It just, seriously, doesn’t matter at all. It will matter as soon as the stock starts trading after earnings, when the opening bell rings, but it doesn’t matter where support and resistance was. A stock is not going to gap up or down in the after market to hit a support or resistance level. So what I’m really saying is, if you bought this at $13.00 in anticipation of the stock bouncing off of support, earnings pretty much took that off the table, didn’t they?
Okay, Wynn ( NASDAQ:WYNN ). They reported good numbers, had a strong quarter. If the stock trades up tomorrow the 50-day moving average is holding. But here’s the thing, if you look at the weekly chart, to me, one of two things seems most likely, either the stock drifts sideways for a while, how ever long it could be, either the stock drifts sideways for a while or even pulls back a bit. After hours, as I do this video, it’s hard for me to see the stock just continuing to move higher. I think it’s either going to drift sideways or down a bit. So we look at the daily chart and this is what I’m looking at: I’m looking at a potential upside, reasonably of $100.00, because that’s the top of the channel. If the stock cannot start trading above say 95.00 tomorrow or Monday, then take that $100.00 price target off of your radar and just look for the stock to trade lower. I think a stop just a little bit below this would work, but to me the thing that works the best is, this is not a stock that I want to own right now, I wouldn’t either if I were you.
3 Stocks I Saw on TV Free Chart