3 Stocks I Saw On TV – KORS, LE, 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, the next 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.
First we’re going to look at Kors here, Michael Kors ( NYSE:KORS ). They reported earnings that beat estimates on revenues as well as bottom line earnings; and the stock is up you can see it, up pretty dramatically, over 6 percent. So what do you do with this stock? I would suggest doing nothing, and here’s my point: When you look at the weekly chart, higher low. We look at $40.00 as probably the floor on this stock now. They beat earnings. They beat revenues, that’s a good thing. This stock had absolutely been crushed over the last couple years, right? So this is making a turnaround.
But this is what I’m saying, do absolutely nothing. Here’s why: If you’re a long-term guy, just hold the stock. You’ve got a higher low. If you like this company, you like this stock, great! Good for you. If you are a short-term trader or it’s right up against resistance, you don’t want to be buying a stock when it’s unable to get above the 200-day moving average, it’s up 6.5 percent in a day on a gap. And then there is further resistance since right about $47.00. So it’s just a real tough time to buy the stock. Instead, wait a few days. Again, if you’re looking to buy the stock wait a few days, let the stock settle in. There’s no reason to jump on this right now. Now, threshold issue, do you want to buy the stock? Would you buy the stock? I really don’t have any reason to. It’s not trending. It’s been just crushed, and I don’t really like any of their handbags, except the nice tan one that I wear late at night.
Okay, Lands’ End ( NASDAQ:LE ).They reported that their Comp-store sales were down more than 7 percent so you could see this stock really got crushed as well. But here’s the deal, did it really? It’s down at an all-time low, with a bullet, the thing just keeps on going lower. Here’s what I would suggest: I would demand that one of these bars be green. And what I mean by that is, that the stock close higher than the open, but also the close be higher than the prior days close. So we need it to look like this, like this, like this, anything, just give me an open green box, I’ll show you exactly what I’m talking about. Any kind of green box like that. When you see that type of thing then you know that there’s a good chance that the bottom is in and the stock is moving higher.
Case in point, L Brands ( NYSE:LB ), where you could see the stock was really getting crushed. And then finally this was the first, and I’ve been talking about this in our Chart of the Day since this happened, this was the first indication that maybe the bottom was in but you had to wait, and then the next day, boom! That was the buy signal, and now you’re up substantially on that, because you just waited for the right time. So that’s my suggestion on Lands’ End ( NASDAQ:LE ). Don’t buy a falling knife. It looks like it’s close to hitting the butcher block. Tomorrow, maybe the next day, that’s when you want to buy the stock.
Okay Tesla ( NASDAQ:TSLA ). Not really much reaction in the stock. The company reported that the buyers of the new Model 3, the cheaper version, might have to be paying for charging. That doesn’t make a lot of those folks happy since they’re typically the ones that would find that most appealing. In other words, somebody who’s buying a $100,000.00 car, if they have to go charge it up they’re not really going to worry about paying some coin to get some volts in their car. But somebody who’s more economically minded, lets just say one of the big selling points for a Tesla car is that they get free power.
So what’s this going to do? Absolutely nothing. The stock is essentially unchanged, it really is, on this news. I just don’t really think it matters. So this is one of those where the company is in the news, stock’s in the news, nothing done on the stock. The weekly chart shows this right in the middle of the range, right at the 40-week or the 200-day moving average. So what do we do? I think we do the same thing as we’re doing with Michael Kors ( NYSE:KORS ), which is, you know what? Absolutely nothing right now. Play it close to the vest guys. Just wait for you opportunities. You want opportunities to make money. Every day there’s tons of opportunities, unfortunately most of them are opportunities to lose money. So be discriminating, be patient. Error on the side of no, and then you wait until it’s time to say yes.
3 Stocks I Saw on TV Free Chart