Thinking about buying AT&T (T)? Here’s your trade. (December 12, 2016)
AT&T ( NYSE:T ). I want to talk about this because most of the market was pretty tired today, AT&T ( NYSE:T ) was not. And just from the stuff I read, and you can read this stuff too, one of the reasons AT&T ( NYSE:T ) was up, they’re are trying to buy Time Warner ( NYSE:TWX ), and Donald Trump says that he is against that and he is not going to let that happen. First of all it is not going to be his choice. There is a process, we have a government not an emperor. But even then, I don’t think that is as big a deal as the fact that, and you can see this across the board, you can see it in financials, you can see it in insurance companies, this idea that we are going to get rid of some of these flipping regulations that do nothing but fill up the books in Washington and give people meaningless jobs to enforce regulations that basically just hamper businesses. If a lot of those are going away, and they are, then that is going to be good news for these big, massive companies like AT&T ( NYSE:T ). I mean look, telephone, communications, media, it is kind of a big industry with a lot of regulations.
So I think that is one of the biggest reasons why AT&T ( NYSE:T ) is moving up for almost a 5 percent yield, works as well. Lets look at the weekly chart, this is a really sloppy chart guys. If the high was here, which it was, 44.00. The low was here, which it was, 36.00. Right about the even would be $40.00. So this is just barely moving into the upper half of the range. I think it is a little bit tired now. What I would suggest doing is, if you are looking to buy AT&T ( NYSE:T ) I think it is not a great idea to buy it now, simply because this was the high up here. There is a lot of pain in this chart. So as the stock starts to move higher, if it is trying to, ultimately you are going to see this selling; the buying is going to soak that up, and I think that the stock could fall back and give you a better entry.
I wouldn’t be shorting this stock under the theory that, “Oh, it is right up here, up against this prior resistance level.” I don’t think you want to do that. Stocks basically have a lift to them, at least into the end of the year, a little bit toppy right now. It would be nice to see another day of at least rest. But AT&T ( NYSE:T ) I think is a stock that you want to own, it is just hard to buy it right up here.
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