3 Stocks I Saw on TV (AAPL NTDOY UA) (September 07, 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, to buy 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 start with Apple ( NASDAQ:AAPL ). They gave you the ‘deets’ on the new iPhone 7, as well as the new version of the watch. The stock is up .62, it’s up 67 cents. During the day (after this release) you could see it went up a little bit and then essentially flat to down. Here’s the thing: I’m not going to ‘dog’ on Apple’s ( NASDAQ:AAPL ) product, I didn’t see the presentation, and I don’t know that much about it anyway. I am happy with the iPhone that I have; I wish it was waterproof because I have ruined two of them already when I forgot to take the phone out of my swim trunks. Maybe I just shouldn’t be so connected when I’m around the water.
Anyway, here’s the thing though: Apple ( NASDAQ:AAPL ) didn’t trade down on this. So it’s not like this was a ‘buy the anticipation and then sell the disappointment’; it just didn’t trade UP on this, which means that the market WASN’T really surprised. It was kind of like everybody knew that they were going to improve on the camera and that’s that. And this, in my view, is a potential negative; apparently the Pokémon Go app is going to be available on the watch pretty soon. I view that as kind of a negative just due to Darwin’s law of natural selection, there are so many idiots running around chasing a phantom object, getting hit my cars, running off cliffs, etcetera, that I don’t know if want your consumers playing that kind of stuff. It’s a little bit like Russian roulette only with a cuter object, so I’m not really sure about that.
The bottom line is this: Apple ( NASDAQ:AAPL ) is still IN a downtrend here. It’s still trending lower here. The 200-day moving average though, has been resistant. It might be support, you’re seeing a crossover of the 50 and the 200. This is not my stock, because I like stocks that are already in uptrends. Because the longer I trade, frankly, the more I realize that being right, getting in early, isn’t nearly as important as it is just to be in a stock that is moving higher. And that means that I want to be in a stock that is established. But if you are an ‘Appleonian’ you can buy this stock and then have a fairly tight stop down here, 3 percent maybe max. And the reason is, because the only reason you’re buying the stock is because you think it’s going up from here. If instead this is the high and it starts trading lower, you don’t want to be in that stock anyway.
Another one related to that is Nintendo ( OTCMKTS:NTDOY ). Choppy, choppy chart. It trades overseas and it seems like no volume at all. Apple ( NASDAQ:AAPL ) is adding the Super Mario Run to the phone. Seriously, this is not my deal. I don’t know anything about video games. Being a guy that is 58 years old I don’t know how many years I have left and I’m not going to spend any of it playing some dumb video games. Opinions vary though and there are 7.8 million shares that were traded UP on Wednesday here. Don’t buy this stock here. It’s up 30 percent, don’t chase it here. And if you are long, frankly, use a trailing stop of some kind. Just drag your arrow along there, use a trailing stop and I think you are going to be fine.
The last one, Steph Curry was all over CNBC on Wednesday morning talking about Under Armour ( NYSE:UA ) and various other things. Trying to play the piano, that didn’t go too well, but that’s okay (he drains the threes). This is a stock I think you can buy. Again, it’s not MY kind of stock, I like the uptrenders. But this is a stock that I could make a case for owning it. It’s been trending sideways for a while. They don’t pay a dividend. Earnings are still about a month and a half away. It’s probably going to start trading up here.