3 Stocks I Saw on TV (July 07, 2016)
HUN AET HUM JUNO CUDA
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 pick up 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’m going to start out with Humana ( NYSE:HUM ) here. The stock dropped a bunch, along with Aetna ( NYSE:AET ). And the reason is, because the Department of Justice is meeting with Aetna ( NYSE:AET ) tomorrow. Now Aetna ( NYSE:AET ) is supposedly going to be buying Humana ( NYSE:HUM ), and the DOJ says, “Hey, we’ve got some questions for you about whether you might become too powerful.” Basically it’s an antitrust thing. Look, this is what the DOJ does. Who knows whether that deal will be busted up or not? You know the administration, it will be this one, it will be the next one too, whatever, it will be very touchy about healthcare issues. So this, I think, creates a lot of uncertainty in the market, that frankly, at this point, you’re kind of gambling. They are basically biotech stocks. We’ll get to Juno ( NASDAQ:JUNO ) in a minute.
So I would suggest just being careful of these. It could be nothing, but I just don’t trust the DOJ. And I think it’s just gambling to be owning a stock that might have a major deal unwound. Or there just would be a whole bunch of uncertainty. But I will tell you this: As far as levels, lets say you bought it on this dip, and look, you’re probably going to see a snapback tomorrow, to some extent, that’s just what happens with these big moves. But if the stock drops below 160.00, lets say you bought it here on this downdraft, if it drops below 160.00 I think you want to cut that loss and get out. But as just a short-term trade, probably take it here, with a stop below 160.00, and sell it a few dollars higher. But like I said, just kind of from a longer-term perspective, when I hear a knock on the door, “I’m from the Department of Justice,” I don’t feel like buying that stock.
Okay, Juno ( NASDAQ:JUNO ), the price is down here. They reported that their clinical trial, for a Leukemia drug, is on hold because of two deaths. And that is certainly a tragedy. This stock is down big, 30 percent, so it’s basically lost a third of it’s market cap in a very short period of time. Here’s how I’ll help you make money on Juno ( NASDAQ:JUNO ): Don’t lose money, stay away from this stock right now. Look, this is a big deal. This company doesn’t have a deep pipeline, so this is a big deal, which is why it’s lost 30 percent. I have no idea which way it’s going to go tomorrow, but I’ll just say this: If 5-10 minutes after the stock opens for trading, if the stock is up ABOVE the opening price, then go ahead and buy the stock. If it’s BELOW the opening price, DO NOT buy the stock.
And then finally, Barracuda Networks ( NYSE:CUDA ), CUDA, is up, I think over 10 percent, yes, like 15 percent on really strong earnings. They beat forecasts on revenue and earnings and the stock is up. But here’s the thing on this, it’s right up at this prior resistance. I think this has been pretty much definitively labeled the bottom here. Now I’ll say, this is a higher low. But just from a trading perspective, I have a hard time buying a stock that’s up 15 percent on a gap, when it’s right at this resistance level. I would say this: If you’re long this stock, I would strongly suggest selling into this news. Fifteen percent, that’s a pretty big move in one day. Take your profits and run.
And by the way, if the stock gaps up here and then starts trading down, feel free to short that puppy too. As long as you have your buy stop a little bit ABOVE where the stock opened. So the stock gaps up, if it starts trading below where the stock opened at, then you go ahead and short that stock. But you make sure that you have a buy stop, b-u-y stop above where the stock was trading. So if it does take off like it’s a gap, flounders around a little bit, and then rather than going down, instead moves up, you don’t want to be sitting here watching this stock moving higher and higher. You get out before you’ve lost a lot of money.
3 Stocks I Saw on TV Free Chart