3 Stock I Saw on TV (HSY IBB TSLA) (June 09, 2016)
HSY IBB TSLA
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 that I saw on TV.
We’re going to start with Hershey ( NYSE:HSY ). Last night, on Fast Money, Dan Nathan was talking about unusual option activity. Essentially thinking that this company might be an acquisition candidate. Okay, I get that, but most of you guys aren’t options traders. This is unusual stock activity. Hershey ( NYSE:HSY ) is NOT a particularly, shall we say mobile stock, it doesn’t really move that much. And so a 3 percent move in a day, on volume, I don’t really care about whether the move is because there’s conjecture that maybe the company’s going to be acquired. I think this is just a good TECHNICAL breakout here. All the better if the options warrant this as well, if they support this. But this is a high volume breakout, more than twice average volume. I would say, support right now, is $94.00.
I’ve seen the way these types of breakouts have been trading lately, it wouldn’t surprise me if the stock kept going for a bit. I don’t know how high. I’m not the guy that’s just going to pound the table going, “Oh, you’ve got to buy it before it gets to $110.00!” I don’t know. I just know that I’ve seen these types of breakouts and they tend to keep going for a bit. And frankly I think some of it, honestly, is because there just aren’t that many good ideas out there. This is just the kind of market we’re in. Everything is just kind of ‘toppy’, even the money in your pocket doesn’t have a lot of value in it anymore. So the bottom line is, I think this is a stock that works. If the stock falls below 94.00 then this breakout is a fakeout and you don’t want to be long. Instead, go to the store and get one of those ChocoBars.
Okay, IBB ( NASDAQ:IBB ). A lot of chatter now, with the Democratic nominee being more and more likely to be Hillary Clinton, and then you’ve got Donald Trump, blah, blah, blah, all this and that. So the question is, what’s the biotech going to do? What’s the biotech industry going to do? Clinton, who’s tweeted, “Death to biotech.” Trump, big populace guy. So the bottom line is, NOBODY who’s going into the White House, unless it’s a lobbyist, NOBODY who’s going into the White House likes biotech. They all want to drop prices, etcetera, etcetera, you get the point. Here’s my point, this is when the election is going to be, somewhere out here. Really? Do you really honestly think that you can game this one way or another? Seriously, this is total headline crap, I guess. I’m not putting anybody down. I’m just saying, it’s all interesting, it’s very interesting to think, “Oh, what’s going to happen to the banks? Donald Trump, war on Wall Street. Hillary Clinton, my God they’re in it together. They both hate Wall Street, they’re going to go after the banks.” Guys, it’s in November. Lets deal with this planet here. We’ll deal with that later.
Here’s my suggestion on IBB ( NASDAQ:IBB ). By the way, the previous rant, was absolutely apolitical. I’m not talking about either candidate, I’m talking about the CALENDAR. This is in a sideways congestion phase here. I don’t want to be a buyer here, because so far, this is really where the sellers have lived. I want to be a buyer down here, because this is where the buyers have lived. Even here, when we’re in no mans land here, I think this is just no trade. It’s a watch. It’s really interesting I guess. But this is a volatile sector anyway. It’s BIOTECH for crying out loud. Seriously, just don’t waste your time even caring about what one candidate or the other is going to do in biotech. And by the way, it doesn’t matter who wins. It’s the passage of time. Who gives a rip? I don’t. Talk to me in late October, then we’ll chat again.
Okay, Tesla ( NASDAQ:TSLA ), last one here. Big news today, Elon Musk announces that they’re going to be selling a cheaper Model S, $66,000.00 is the base price (sure, that’s cheap), $66,000.00 is the base price. And apparently the deal is, you will still going to be able to fill up your electrical tank for free at the charging stations. But it’s going to be limited to like 200 miles, 200 miles a tank, on your range. As opposed to what? I have one and I guess it’s above 200, but I just go from charging station to charging station, because it’s very lonely being on the side of the road with an empty tank of electricity. But the idea here is that they’ve got software that’s going to keep the mileage down. And if you want more mileage all you have to do is pay them more money and you can unlock the software code, which seems a little funky to me. But whatever floats your boat Elon, got to get to Mars.
So my suggestion here on Tesla ( NASDAQ:TSLA ) is, I wouldn’t be trading this right now. I thought that we were going to have a breakout here. But now this is just a crappy chart. It doesn’t have the, “Oh, here’s a breakout, a possibility for a breakout,” and it moves to 270.00. Great. I don’t see that now. This is still a stock that’s just chopping around. I would literally do nothing with this. If the stock starts breaking out above 240.00, okay, then it’s a momentum trade and you can take it for like 8 or 10 percent. But even then I’ve got to emphasize the fact that this is a BRUTAL chart. There’s NOTHING in here. It looks like somebody ate a box of toothpicks, couldn’t get them swallowed. Barfed them up on a piece of graph paper and then wrote Tesla ( NASDAQ:TSLA ) on the middle of it. So it’s not a great chart. I don’t think there’s a trade here right now. At least not a safe one.
3 Stocks I Saw on TV Free Chart