3 Stocks I Saw on TV (NKE, JPM, DPZ)- June 28, 2016
Every night we watch the same shows, Fast Money and Mad Money, and we want to USE those ideas the make OUR money, right? Fast Money, Mad Money, how about my money? That sounds better. Anyway, 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 JP Morgan ( NYSE:JPM ). Cramer was talking about JP Morgan ( NYSE:JPM ); and Cramer thinks the UK leaving the EU was like, as he says, “A boneheaded move,” so you know where he’s coming down on this deal. Cramer was talking about JP Morgan ( NYSE:JPM ) as basically being a stock that’s unable to really rally because of Brexit and all the big turmoil over there. And that may be well and good. I think interest rates probably, maybe have a little something to do with that too. The point is, rates are going lower. Banks don’t like it when rates are going lower. You can look here at the daily chart ( INDEXDJX:DJUSBK ), because they can’t make any money on it. So with JP Morgan ( NYSE:JPM ), I think certainly it’s Brexit, okay, fine. But there’s also an issue here with rates.
I think you stay away from JP Morgan ( NYSE:JPM ) and it has nothing to do with the aforementioned. It has to do with the fact that the stock is really volatile and it’s breaking out of this channel. So if you’re going to trade it, fine. Buy it now at 59.52. Sell it at 62.00. You’ll be glad you did. Also, one other thing to keep in mind, and this is important and I’m not really veering off track, but I don’t really hear anybody saying this; about 3 percent of the total revenue in all the companies in the S&P comes from the UK. Dude, 3 percent. So this is, I’m sorry I’ll be the guy to say it, this is NOT a big deal for companies, it’s just not. It’s a big deal for the globalists who are kind of angry because their “chuckwagon” here, the “gravy train” that they’ve been on is maybe coming to an end.
Anyway, back on track here with Nike ( NYSE:NKE ). The company reported earnings and I think they had strong overseas sales, but the stock is still down quite a bit. I would say, I can’t buy this tomorrow for a couple different reasons. First of all, if it opens where it is now that’s just less than 4 percent so it’s not like this huge gap that’s going to reverse. But also, this is the weekly chart and it just pays to pay attention to this stuff. I don’t really see any reason for the stock to gap down and just start just rushing up to a new high. I also don’t see any reason for you to be selling this stock at the open just because that’s what everybody else is doing. Don’t be that guy.
So I would just say, stay away from Nike ( NYSE:NKE ). And if you’re already long the stock, seriously, and I’ll say it as gently as I can, watch the weekly charts, don’t be long stocks that look like this. Be long stocks that look like that ( NASDAQ:ULTA ). You’ll make more money. And by the way, Under Armour ( NYSE:UA ), I love Under Armour ( NYSE:UA ), but this is really not a heck of a lot more attractive than Nike ( NYSE:NKE ). So look at these weekly charts to decide whether you want to be holding stuff over earnings. Typically, in my view, you don’t.
Okay, last one, Domino’s Pizza ( NYSE:DPZ ). They’re talking about this on Fast Money as well as on Mad Money. Their CEO said Brexit didn’t mean anything to them, like big deal. And I guess also, maybe pizza making robots are going to be, I think they are doing more than just making hamburgers on that $15.00 per hour minimum wage deal. But the bottom line is, everybody seems to like Domino’s ( NYSE:DPZ ). The stock is in a really choppy pattern, no question about it, it’s really choppy. I would say I would want to wait for it to get closer to the 200-day moving average. Even if that means being patient, hoping that the stock just trades sideways as opposed to taking off without you. And then the 200-day moving average continues on it’s trajectory, in maybe a month or two you buy the stock.
Here’s the thing, this had such a HUGE extension here. This was a big, huge extension above the 200-day moving average here. So this is just coming back down to earth. I think you can give it a little more room before you go grab this thing. Also, they report earnings in about 3 weeks or so, so you’ve got plenty of time to hop onboard. This is one that I would just kind of be staying away from also.
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