3 Stocks I Saw on TV (INTC AXP QCOM) (July 19, 2016)
INTC AXP QCOM
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 to get the tickers you saw on TV last night. I’m here to help you make money on THESE 3 stocks I saw on TV. We’re going to look at the earnings here.
Intel ( NASDAQ:INTC ). You can see the kind of move it had. You can also see the way it has been trading after hours. Now, here’s the thing, it’s kind of a little trading lesson here, they beat their earnings per share estimates. They were estimated to do 53 cents, they got 59 cents. That’s like 10 percent, that’s a 10 percent beat. That’s pretty solid. The problem is, they missed their revenues. Not by much, I would say it’s basically flat. So the stock is down. Why is the stock down? I personally think it’s because it ran up so much in anticipation of earnings that there’s really nothing to do except sell and take your profits.
So longer-term, what I would suggest is this: Honestly, look some place else. Nothing against Hewlett Packard, it’s just that it’s such an old tech company. I think that you’re probably going to find some higher growth stuff elsewhere. When you look at the weekly chart you can see this big, prolonged zigzag. I just think, even with this pullback you would still even probably get a little bit cheaper. Here’s the caveat though, if the stock starts rallying, this is for you traders, if the stock starts rallying up above the intraday high here of 35.93, we’ll say 36.00. If the stock starts rallying above 36.00, you could probably take this for a long trade. If it does rally above 36.00 it tells you the stock ran up, gaps down at earnings and people STILL want to buy this stock. There’s so much aggressiveness, with respect to buyers, that they’re pushing it up ABOVE the pre-earnings price. So that’s your buy signal for taking the stock. Otherwise though, I think you just stand aside and let it do what it’s going to do.
Okay, American Express ( NYSE:AXP ). They beat their earnings numbers, but they missed on revenues. This is a problem. When companies miss revenues, investors don’t like that. They want to see companies increasing their sales revenues. EARNINGS can be massaged based on cutting costs, and moving stuff around, depreciation, etcetera, etcetera. Revenues, it’s either in the till or it’s not. So with American Express ( NYSE:AXP ), the stock is still just kind of trading around sideways. I wouldn’t be buying this stock until it breaks out above, we’ll call it 65.50. If it starts breaking out above 65.50, then this is what you want to keep in mind: Here’s the 200-day moving average; look how much time this stock has spent BELOW the 200-day moving average at certain levels. So if it starts breaking above this we could be seeing a lot of time where the stock starts trading above or keeps trading above the 200-day moving average. So I would really be using THAT as my benchmark.
Now Qualcomm ( NASDAQ:QCOM ). Great numbers, the stock gapped up. I still wouldn’t buy it first thing in the morning. Again, it’s up, it’s not up huge, 6 or 7 percent, there will probably be upgrades and this and that and the other thing. But the stock is just going to be up too much to buy first thing in the morning. Ask yourself this, if I buy this thing at $60.00, it was $56.00 before, if I buy it at $60.00, that’s my cost basis, how much more and I going to make? How much will I make from $60.00 up to a higher price before the stock ultimately kind of sells off or at least turns around? I would say, not that much. So here’s my suggestion: Tomorrow is Thursday, I would wait a couple days, hopefully the stock will pullback, you can get a lower entry. But make no mistake about it, the stock is in an uptrend, it’s just breaking out, wait for it to fall back into it and that’s the better time to buy Qualcomm ( NASDAQ:QCOM ).
3 Stocks I Saw on TV Free Chart