3 Stocks I Saw on TV (NUVA, AMGA, GPRO) (June 02, 2016)
NUVA AMBA GPRO
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, in the 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.
I want to look at NuVasive ( NASDAQ:NUVA ). Cramer had the CEO of the company on Mad Money last night. The bottom line is, he’s really bullish on this. Really, really strong volume today. What I’m looking at is this volatility squeeze. Notice how the stock has been trading, three out of the last four days it’s closed outside the upper Bollinger Band here. Two standard deviations, above the 20-day moving average, so it’s closed ABOVE that level, AND ALL four days it’s actually traded above that level. So the bottom line is, this is coming out of a volatility squeeze, very, very tight squeeze right around $54.00. If you look at the weekly chart you’ll see the stock is breaking out of a really long period of consolidation. Honestly (not that I would ever be dishonest here), I think you can buy this stock right now. Not really as a trade, but this is a stock that’s coming out of a long consolidation period. They make good stuff as far as spinal treatments, it’s all good. Even for those of you with straight backs, this is still the kind of stocks that you want to get.
Okay, Ambarella ( NASDAQ:AMBA ). Their stock is up a lot after hours because they reported some really strong earnings, which TOTALLY helps GoPro ( NASDAQ:GPRO ) as well, which I’ll tell you about in just a second. But if we look at the 1 minute chart you can see what happened. This stock initially traded down. See, don’t trade after hours, you think you’re smart, but you’re actually really not. “Oh, I’m going to buy.” And then, “Oh crap! I’ve got to sell this thing.” And then finally the stock trades higher and you wish that when you had bought you had stayed long. And then you wish that when you closed it out and shorted, you didn’t do that either. So now you’re looking at it kind of feeling like a fool. Okay, don’t let me be describing you. The bottom line is this: The stock traded up, it’s right against resistance, but this is a stock that so many people have been shooting against, it’s got about a third of the float that’s short. We could see a real pop in the morning.
I can’t buy stocks that are up 10 percent on a gap, it’s just not something that I can do. I’ve done it plenty of times before and virtually and I always lost money. But if this stock continues to run, this is one that you want to buy. Frankly, if it happens to sell off, that’s when you want to buy too. The bottom line is this, again, tough to buy a stock up 10 percent. I wouldn’t recommend doing it. It’s just not something you want to chase. If the stock gets away from you, consider it a missed opportunity, as a trade. But ultimately, I think as the saying goes, because I made up the saying, it looks like it’s gone down enough. So 35.00 is support here, the stock is appreciably above that now, but you want to be taking this on any kind of weakness.
GoPro ( NASDAQ:GPRO ). Okay I’m going on vacation in a couple weeks. I’ll be honest, I bought a Hero camera, still sitting in the box there, I haven’t even tried to figure out how to use it yet. What can I say, I’ve been busy. But you look at the stock, it’s up big on Ambarella’s ( NASDAQ:AMBA ) numbers, not that big actually. But I would look at this in the same way I’m looking at Ambarella ( NASDAQ:AMBA ), it’s gone down enough. This is your low right here. I wouldn’t rush to buy it just because Ambarella ( NASDAQ:AMBA ) reported good earnings. But watch it, because this company reports in a month and a half, in mid July. But look at this stock, if it starts trading up a bit, it really needs to blast all the way through here. I don’t think this is going to happen, but I do believe that you want to be long BEFORE they report earnings. I’m looking at Ambarella ( NASDAQ:AMBA ), good numbers there. GoPro ( NASDAQ:GPRO ) has gotten absolutely crushed, if you call $90.00 to 9.00 getting crushed. I think this is a stock that you can be getting long into earnings, not at 10.72 though. Wait for the stock to pullback a little bit and then take that stock.
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