Here’s the analysis on Texas Instruments ($TXN) and Dell ($DELL) – December 8, 2021
DELL TXN
I want to show you a couple of stocks that I am looking at. I will just get right to it, Dell ( NYSE: DELL ) and then Texas Instruments ( NASDAQ: TXN ). I will show you why I am not buying them yet.
We look at Dell ( NYSE: DELL ) here. This thing had had a really, really nice consolidation since April, right? So, really, has Texas Instruments ( NASDAQ: TXN ). You see the same kind of things. You see the weekly chart, it’s been drifting kind of sideways for a while. It sure seems like it’s ready to roll up. Dell ( NYSE: DELL ) looks a little bit different but it is actually moving higher.
So here’s the thing, why have I not bought these? Why am I not buying this stock? I think I first mentioned to our members a couple of days ago that I am really looking at Dell ( NYSE: DELL ) as a stock that I want to put on our active trades. In other words, I will open the position, tell you just where to buy it, tell you what the stop is and I will walk you all the way through the trade.
I think it might have been last Friday, the reason I didn’t want to do that is that I see what the stock is doing here, I see the nice volume. But over the past couple of weeks, the stock hasn’t been able to get above that level. And so I didn’t look at this as an actionable event unless, frankly, the stock kept going the next day. So I decided to hold off and the stock did move the next day. Oh crap, I should have bought it. And then sure, it goes up a maximum of .9 percent but then closes down from the low, this was on Tuesday the 7th, yesterday. Now today it’s down even more.
The point is, I have been looking at this as an entry but it has got to be the right entry, it has got to be the right entry. I have an alert set for our members, where you are going to risk anywhere from 3 to 5.25 percent, depending on where you are actually setting your stop. My idea is, that I want to buy this at 57.00, preferably lower, but only after it pulls back to that level and then shows that there is still buying. Because only then would I feel like this time around it is going to break out. But until that happens, don’t expect it to.
And then Texas Instruments ( NASDAQ: TXN ), this is actually even a little bit easier. You see where resistance is, $200.00. Now, if you say, I’m going to buy that now and get an early head start. Fine, how much of a head start are you getting in order to take the risk that the stock could pull back yet again? You are going to get a big jump on this by 1.75 percent by buying now as opposed to waiting for the stock to move above 200.00. In return though, for getting that little bitty jump on things, you are going to take this kind of risk too, that the stock is going to keep coming down and fall back into what I just call the bottom of the box.
The point is, I like both of these stocks. I like Texas Instruments ( NASDAQ: TXN ), I like Dell ( NYSE: DELL ). I don’t own any of them, I don’t own either one of them and I am glad I don’t because they have been drifting sideways for months. I am already trading these but I am trading them because I am watching them. I order for you to be a good trader you are not just buying and selling. Most of the time you are watching. You are sitting there like the king of the jungle, underneath the shade of a nice tree, waiting for the gazelle, with a limp, to walk by. Then you go out, you have a nice meal, and then you go back and take a nap. Most of life, most of trading is waiting, which is, as we have learned from Tom Petty, the hardest part.
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