3 Stocks I Saw on TV (TSLA, WFM, FIT) (May 04, 2016)
Every night we watch the same shows, Fast Money and Mad Money, and we want to use those ideas to grow OUR money, right? Well good trading it takes more than just punching the buy button, the next morning, on the tickers that you saw last night on TV. I’m here to help you make money on THESE 3 stocks I saw on TV. We’re going to look at earnings here, Tesla ( NASDAQ:TSLA ), Whole Foods ( NASDAQ:WFM ), and Fitbit ( NYSE:FIT ).
First, earnings, decent. Guidance, decent. Hey, everybody loves Tesla ( NASDAQ:TSLA ), right? I don’t think so. Frankly, I think this is a selling or shorting opportunity. This is though, a really volatile stock. I’m telling you it is not for the faint of heart and it’s not for the non-committed either. The deal is, we’ve got what could be a triple top. If you look at this on a daily chart you can see the stock is up after hours. I’m going to show you what it looks like right now. Big move to the upside, now this is fading here. Again, it’s up, I think this is a stock that’s moving right up into resistance. If the stock moves THROUGH this big area of resistance; and the reason that I’m drawing a red line there is, if you were buying it back here, wouldn’t you kind of be anxious to get your money back after the stock fell this low and is now just moving higher? So, I think this stock moves up a bit. That move may be up tomorrow, it may take until the end of the week, might be the first of next week. But I’m telling you, if this thing even twitches, if it starts to roll over, I think this is a good shorting opportunity.
Now, Whole Foods ( NASDAQ:WFM ). Interesting here, different chart. I think it’s probably about the same thing here. You look at the weekly chart, this stock looks kind of scary. I like Whole Foods ( NASDAQ:WFM ), though where I’m from they call it Whole Paycheck, for obvious reasons. But here’s another thing where this short interest is pretty decent. It’s good enough to make this a little it of a short covering rally, but I’m going to do this again; there’s a whole lot of regret going on there. I think there’s limited upside here. What I would suggest doing, because look, there’s two sides to every trade. I could be wrong about wanting to short this stock, but here’s your downside: If you are buying this stock on this gap, I draw a line here, this is a new low on this chart.
So you’re buying the stock right here, “Dan, you don’t know a darn thing, I’m buying this stock.” You put your stop down there. If you’re stopped out, fine. That’s a trade, you take your shot, you decided what your loss was going to be, and then you took it. On the other hand, if you are shorting this stock, what I want you to do is wait for evidence that this stock has petered out. Wait for a box that kind of looks like this, or like this. What you want to see is a solid red box, which indicates that the stock gapped up and then ultimately closed lower on the day from where it gapped. It will gap up tomorrow, no question about it. But you want to wait and make sure that the stock has stalled. By the way, you don’t have to short this stock. I’m just saying you don’t want to be buying it up here, I would rather be selling it.
Now, Fitbit ( NYSE:FIT ). This company reported kind of blowout earnings, if you call earning a 10 cents a share versus estimates of 3 cents a share. So they tripled their fun here. What’s the problem? The problem is guidance. Nobody really cares, except for a split second when earnings are first released. Nobody really cares so much about what the company earned, as what they’re going to earn going forward; and so their guidance was a little weak. But unlike Whole Paycheck ( Whole Foods ( NASDAQ:WFM )) and Tesla ( NASDAQ:TSLA ), this is a more interesting chart to me, because the stock is gapping right down to the 50-day moving average, where it’s been UP for a while. So we get this volatility squeeze here, a breakout on volume, and now I think you’re getting a second bite of the apple. It this stock opens right around $15.00, this is another low risk trade. Even lower than if you’re buying Whole Foods ( NASDAQ:WFM ). You just put your stop a little bit below the 50-day moving average and that’s your bogey, right there.
3 Stocks I Saw on TV Free Chart