Here’s your trade on MobileEye (MBLY). (August 25, 2016)
MBLY
As we wait for ‘Jumpin’ Janet’ to be talking tomorrow at Jackson Hole (‘Jumpin’ Jane’t at Jackson Hole) I want to look at Mobileye ( NYSE:MBLY ). This goes away from the Fed or any of that other stuff, it’s just a really good pattern. Remember this is the company that is in the, among other things, the self-driving car stuff, I call it the George Jetson technology. They’re not doing business with Tesla ( NASDAQ:TSLA ) anymore but there are other car companies out there that kind of have the same idea. So what do we have going here? I think this is a pretty good buying opportunity. It is NOT a high momentum stock, not right now. It’s a high PROFILE stock, but it’s not a high momentum stock. Since the low here the stock has basically doubled, it went up a little bit more. But what I like about this is the sideways consolidation and the stock staying above the 50-day moving average. So this is a stock, frankly, I guess you could buy a little bit now if you wanted to, but that’s not my idea.
My suggestion is, you wait for the stock to breakout above 51.00; I think the high here was 51.15. If you wait for the stock to breakout then you will be buying this stock WHEN the consolidation period has run it’s course. As long as it’s in here it’s just in jail. And I wouldn’t be buying it here anyway. You would want to see some kind of a pullback to at least buy it at the low end of the range. When you are buying it up at the high end of the range that’s where the selling has occurred. So you either wait for the stock to jump THROUGH here, OR, wait for the stock to pullback, hope that it does. In my view, I think this stock ultimately goes higher because it certainly doesn’t trade on fundamentals. But wait for the stock to be moving up and continuing this uptrend. Until that time what you’re really doing is, you’re putting your money to work and then it’s just sitting there staring at you. So go ahead and give it a few percentage points, actually more than that. What you’re giving up in dollars here, as far as, “Oh gosh, I should have bought it before it broke out?” What you’re giving up in dollars you’re making back in certainty.
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