3 Stocks I Saw On TV (ULTA, CHS, ANF) (May 26, 2016)
ULTA CHS ANF ULTA
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, to get 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 Ulta ( NASDAQ:ULTA ) here. LOVE this company, love the stock. They reported earnings and wow! where’s the stock trading at? This stock was up, at one point, about $20.00 or so after hours. They were talking about this on Fast Money and the consensus was, you’ve got to sell into this. I have no problem with that. If a stock is up as much as this is, it will probably be up 10 percent tomorrow morning, it pays to sell into that, because it’s just such a quick profit. In the past though, look what’s happened with this stock: A year ago the stock gapped up and since that opening gap it’s up another 40 percent or so. But it also gapped up and traded sideways forever. It comes up again, same thing, these sideways trends forever. You’ve got the big move here. Now you’ve got the big move here. Again, I like Ulta ( NASDAQ:ULTA ), but I don’t think it’s shorted enough. I don’t think there’s enough short interest that you’re going to see a squeeze tomorrow. I have no idea what’s going to happen first thing in the morning. But I will tell you this, I would be selling into that strength AS A TRADE. Longer-term though, any kind of pullback, if we get a really bad, dumpy day in the market, I would TOTALLY want to be buying this thing back. Because ultimately I think it goes higher.
Okay, lets look at other stores here. Chico’s ( NYSE:CHS ). Wow! Chico’s ( NYSE:CHS )and the man here, Chico and the man here. Not a good thing here. They reported earnings, they’re cutting costs, just brutal. I don’t get any of my stuff from Chico’s ( NYSE:CHS ). Apparently neither does anybody else. The stock was down a lot bigger during the day. It only closed down less than 3 percent after some really nasty numbers. Here’s my deal, this is not a trade for me. If the stock falls back to 9.60 or so it could probably go even lower. But if you are kind of a nimble trader here’s really the analysis: You’ve got ultimate support right there. The stock opened there, closed up there. So you want to see this stock continue to trade higher. If it starts trading back into this range maybe you would ultimately make money on it, because again, this is a higher low. But the stock is under pressure. Retail is under pressure. Do you really want to go to Chico’s ( NYSE:CHS )?
Instead go to Abercrombie & Fitch ( NYSE:ANF ). I don’t think so. Look, Ulta ( NASDAQ:ULTA ) is still the place to go. Abercrombie & Fitch ( NYSE:ANF ), also some pretty brutal earnings; they’re quarterly reports were horrible. This is a stock, it traded down, kept going. It’s still under distribution. You would probably get a short-term oversold bounce tomorrow. But don’t you think, after this kind of move and after the dismal quarter that they had, that any big funds, any big money managers who happen to still be owning this pig. Talk about a marketing campaign for petefelia, I digress, I just see their marketing efforts and think, “Your stock deserves to be at zero.” Again, I digress. The bottom line is, if you’re a big money manager and you still own this stock after the kind of quarter that they reported, you’re going to want to be selling into any strength at all. And I think that’s what ultimately going to be happening here. So just get out. Stay out and move on. And hey, look to buy Ulta ( NASDAQ:ULTA ) on any kind of a pullback.
3 Stocks I Saw on TV Free Chart