Let’s take a look at Beyond Meat (BYND), Amazon (AMZN) and Tesla (TSLA) (June 14, 2019)
I want to get back to looking at these three stocks that I have been covering for the last few days, Amazon ( NASDAQ: AMZN ), Beyond Meat ( NASDAQ: BYND ), and Tesla ( NASDAQ: TSLA ).
We are going to start with Amazon ( NASDAQ: AMZN ) here. The market in general; lets just kind of look at this stuff. Focus on the red line, that’s the 50-day moving average. Boom, right there ( NYSEARCA: SPY ). MidCaps ( NYSEARCA: MDY ), right there at the 50-day moving average. Small Caps ( NYSEARCA: IWM ), below the 50-day moving average. Transports ( INDEXDJX: DJT ), below the 50-day moving average. Industrials ( INDEXDJX: .DJI ), basically right at the 50-day moving average. Nasdaq ( INDEXNASDAQ: NDX ), below but kind of right at the 50-day moving average. Why am is going into this?
Let’s go back to Amazon ( NASDAQ: AMZN ). What I am saying is, Amazon ( NASDAQ: AMZN ) is kind of in jail with the rest of the market. This is a stock that can tighten up like it has been doing here for the last several days, we can draw a few circles around it, where the stock just kind of trades sideways and then goes on and makes a big move. And so that is what we are looking at here. I am seeing the possibility of this stock making a big move here.
But if you sit here, and this is a comment about trading in general, if you sit here and zoom in to where you are really micromanaging something, what you are really doing is, you are trying to make sense out of chaos. Because on any given series of days a stock will just kind of move around and you really need to zoom out to see what’s really happening. As I look at this chart right now what’s really happening is the stock is gathering itself below 1900.00, in between the 50-day moving average and 1900.00, so about a $40.00 range. My suggestion is, you go ahead and set an alert for 1900.00. If the stock breaks out above 1900.00 I think you are probably going to get another $100.00 points pretty quick, so that’s what I am going to do. I suggest that you do the same.
Let’s move on to Beyond Meat ( NASDAQ: BYND ). This was really, it still is, my kind of price range, in between 110.00, which was kind of the high here so I will look at this as support, and then 170.00, which I will say is kind of the high here; I could stretch this up to 180.00 or 185.00, but really, this just feels about right to me. If the stock were to rally up another $20.00 or so it’s defying gravity and will probably just continue to move.
This is a brand new IPO and the best way to look at IPOs that just don’t have that kind of data on them is, go out to an hourly chart or even less. But an hourly chart really is enough to help you make sense out of things. Just keep in mind that each of these lines is one particular day and stocks trade differently in the morning and in the afternoon versus the vast majority of the middle part of the day, so that is why you will see these big moves right at the end of these bars.
So the stock gaps up here, and then runs, and then gaps back down. You would think, I thought, that it would fall ultimately all the way back to $100.00. I’m on record I was saying this, that it really seems like the stock can pull back to $100.00; it’s grossly overvalued. But I will say what I said the other day only the number is different. The value of this stock now is 151.30. And what I mean is, whatever the market is pricing the stock at, that is what traders think it’s worth.
Anybody who wants to sell the stock, that’s what they are selling it for. Anybody who wants to buy the stock, that’s what they are buying it for. So the agreement among buyers and sellers is that this stock right here and right now is worth $151.30. Screw all the fundamentalists who say this stock is grossly overvalued. What I am telling you is, from a fundamental point, yes, the stock is way out over its skis, way ahead of itself. But from a technical standpoint, you know what guys? The stock is kind of on trend. On an hourly chart it’s on trend. I think you have got to stay long the stock. I have a hard time buying the stock in this kind of pattern. But if you’re long the stock keep a 6 percent stop on it and just stay long. Yes, it COULD continue higher even though the technician in me screams that it can’t. This is a stock that is kind of defying gravity and so have a helium burger.
Then last is Tesla ( NASDAQ: TSLA ). The stock is just kind of gathering itself here. Frankly, I probably won’t go back to this stock this next week because it is not really doing anything. It really made the big move that I was looking for, which was, as the stock rallied up I am looking for a gap and then a sell-off and that’s what we got the other day but now the stock is just trading sideways. So frankly, there is no reason to be looking at this stock anymore. It could go up, it could go down. I don’t know which way it is going to go but I know it’s going to go one of those two ways, seriously, so we are kind of done with this.
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