3 Stocks I Saw on TV- SBUX, CMG, CPB (July 21, 2016)
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, the next morning, on the stocks 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 food stocks today.
First of all, Starbucks ( NASDAQ:SBUX ). They reported earnings after the bell. You can see what that looked like, big dump here. So what are we going to do with Starbucks ( NASDAQ:SBUX )? I wouldn’t be doing much anyway, simply because the stock hasn’t been working for a while. You can look here on the weekly chart. If you look at this chart and see a bullish pattern, I suspect you’re long this stock, you already own the stock, you’re emotionally involved. This is printing lower highs, lower lows. On a weekly basis, this is trading decisively below the 40-week or 200-day moving average.
You can see here, the black line here (the other red line), is the 200-day moving average. The stock really needed to pop up ABOVE this level if you were going to have any impression at all that maybe we go higher here. It really needed to pop up above that level. Well it didn’t do that. That’s a problem. So I would just stay away from Starbucks ( NASDAQ:SBUX ). I don’t think tomorrow is an opportune time to buy it. Frankly, it’s too much resistance. I don’t think tomorrow is an opportune time to sell it, because there is too much support, right down here. Tomorrow is an opportune time to look at something else.
Okay, that takes us to Chipotle ( NYSE:CMG ). Their earnings and their revenues were lower than expected. Not a good thing. Also, their same store sales, comps, fell by 23 percent. That’s pretty bad. By the way, I wasn’t one of those guys. I love Chipotle ( NYSE:CMG ). A little E. coli now and then, you know what? It keeps the pipes clean. But, if we look here at the weekly chart, you can see this thing has already had such a haircut. Now, I look at this, I don’t see anything bullish about the chart. I’m just qualifying what I’m about to say. I don’t see anything bullish about this chart, anymore than I did the Starbucks ( NASDAQ:SBUX ) chart. The stock is trending down. Lower highs, lower lows. There’s nothing really bullish about this chart.
With that said, if you’re looking for an opportunity to buy this stock, look at this support here, all along here, that was it. I’m looking at this as an opportunity. If the stock pulls back more, I think you can buy this stock. Chipotle ( NYSE:CMG ) is not going to go out of business. It’s come down by so much, their same store sales were much lower. But what I’m telling you is, it cant’s go down forever. As close as it gets to 400.00, the better opportunity it is to buy, as long as you have a VERY TIGHT STOP. That’s the only way you should be buying stocks that there’s really no way to get around the fact that they’re trending lower.
And then finally, Campbell Soup ( NYSE:CPB ). Cramer likes this. He was talking to the CEO on Mad Money. The thing is, they’re coming out with clean soups, and I love Campbell Soup ( NYSE:CPB ). But their Bolthouse Farms protein drinks were recalled last month. People got sick, they thought maybe there was some spoilage. It seems like a little Chipotle ( NYSE:CMG ) to me.
But here’s the deal: Higher highs, higher lows. So we see, this is actually, in my view, at a good buy point. Go watch Mad Money, you’ll see Cramer has to say about it, but two big distribution days. Huge volume, about twice average volume, on two big declines, relative to the way the stock typically trades, if you look at it. Frankly it’s down 5 percent in a couple days, it can hardly get your attention in the market these days, but it’s down at a good buy point. This is what I think you can do: As long as the stock stays above this close of 63.34, then I think it’s a stock that you can be long. If it doesn’t, then stand aside, wait for more downside, maybe it will test 60.00. But after two big days it’s like this, I would look for a bounce.
3 Stocks I Saw on TV Free Chart