3 Stocks I Saw on TV (HOG PAYX ALL) (July 2, 2016)
HOG PAYX ALL HOG PAYX
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 punching the buy button, the next morning, to get the stocks you saw on TV last night, into your portfolio. I’m here to help you make money on THESE 3 stocks I saw on TV.
We’re going to look at HOG ( NYSE:HOG ) first. Harley-Davidson ( NYSE:HOG ). Rumors, buy out, my goodness good lord I hope it’s not AMF. Those of you that have been around for a while know exactly what I’m talking about. Those of you that haven’t, don’t. Anyway, so they were talking about this on Fast Money and somebody asked Guy Adami what he thought if it turns out that there is no buy out offer? Then isn’t this going to break it’s downtrend and fall right back down? I’m looking at the chart and I would say no actually, because you just don’t see stocks do this. For whatever reason they breakout, unless it’s like a biotech stock where they do weird things anyway, this breakout level actually means something. But first you can look here at the weekly chart that I’ve been showing, this was the real bottom.
Yes, the stock has been trending down for quite a while, but this was a climax low here. And since that time that stock has been drifting lower. But when you get a stock that breaks out on volume, if it doesn’t continue then the typical response is that the stock will fall back down to test the channel breakout. So if it turns out that the rumor isn’t true and maybe they’re not going to be bought out, then all these knuckleheads who bought this stock thinking that they’d get in before everybody else heard about it, a lot of them are going to be piling out. But all the stock is likely to do is come down below 50.00 into the mid to high 40.00s. And then I think that’s where it’s going to find support. Shorts don’t like to get into a stock right after they’ve been burned badly, and I think this is one of those. So I think I’d be buying this on any dips. I absolutely wouldn’t be buying it here. And if they get a takeout offer for $65.00, well, that’s trading, missed the opportunity. But I can’t buy a stock that’s up 20 percent in a day, unless it’s a triple ETF in gold.
Okay, Paychecx ( NASDAQ:PAYX ). Cramer is talking about this company. I’m looking at the daily chart, it’s been in an uptrend for a long time. It’s kind of a similar little deal as with HOG ( NYSE:HOG ) only for different reasons. This had really nice breakout, but the stock just kind of stalled out on Friday. The fact that it didn’t reverse and just trade lower, that’s a bullish indication, it shows that there’s still demand for the stock. But I would just want to stand aside and wait. Let the stock come back down. I just don’t see any reason for it to keep going. So if you like Paychecx ( NASDAQ:PAYX ), fine. I’ll like it a lot better at below 58.00, even down to say, $56.00. If you can get it at $56.00, that’s your entry point.
And then last thing, the Allstate ( NYSE:ALL ) CEO was talking with Kelly Evans about the whole automated, I call it the iRobot car, the self-driving cars. He was saying that he thought that it could be a real savings in coverage, so they’re kind of watching that. I’ll reserve my feelings about having a car that drives itself for another time. But the bottom line is, as Cramer mentioned this morning, I’m doing this on Friday night, as Cramer mentioned this morning about the Tesla unfortunate event, he said people that are drunk get in a lot more accidents than a self-driving car; and that’s really true.
But the point is, I think this will ultimately be a good thing for Allstate ( NYSE:ALL ). I think it will be good for these insurers because I think investors are going to get onboard. What I am looking at with respect to the stock is, yet again, like HOG ( NYSE:HOG ), like with Paychecx ( NASDAQ:PAYX ), this isn’t a stock that I want to buy, not on Tuesday, because it brokeout and it’s pausing a little bit. So wait for this stock to pullback, if you’re an Allstate ( NYSE:ALL ) guy. For me frankly, there are other stocks that are working a lot better than these insurance stocks, but I’m not going to be covering the same stocks in these videos every single day. But there are better stocks. Look, don’t buy this, it’s overextended and needs to come back. Don’t buy this, Harley-Davidson ( NYSE:HOG ), right now because it’s extended, it might come back, but just don’t buy it. And then lastly, don’t buy Paychecx ( NASDAQ:PAYX ) because it’s overextended, it needs to come back. Do you see a theme here in these videos, in this stock?
3 Stocks I Saw on TV Free Chart