3 Stocks I Saw on TV: WFM, URBN, CYBR (March 08, 2016)
WFM URBN CYBR
Look, every night we watch the same shows, Fast Money and Mad Money. Well we want to use those ideas to actually make some money, right? Good trading takes more than just hitting the buy button after the opening bell. I want to go behind the TV screen and check out these 3 stocks I saw on TV. Today we’re going to look at Whole Foods ( NASDAQ:WFM ), we’re going to look at Urban Outfitters ( NASDAQ:URBN ), and we’re going to look at Cyberark ( NASDAQ:CYBR ). These are 3 stocks that Cramer was focused on, on Mad Money.
First, Whole Foods ( NASDAQ:WFM ), Cramer’s point here is, these guys like Urban Outfitters ( NASDAQ:URBN ), and like JC Penney (NYSE:JCP ), they spotted some mistakes in their business model and what they were doing, how they were relating to customers. Basically, are we giving people the opportunity to buy stuff that they want, right? So they made some changes and the STOCK is being rewarded, the company is being rewarded. So Cramer is looking at Whole Foods ( NASDAQ:WFM ) as a stock that you can buy right now. I look at this now, from a technical standpoint. First, on a technical take, this is a base here, so I agree with Jim, I think the stock is one that you can buy right now. But I’m looking at the run that it’s had, and it’s hit the same resistance level as it’s done a few times, in the past, over the last year.
If you are buying the stock right now what you are saying is, that there’s no way the stock is going to come into the box again. Just magically it’s going to breakout, which it might, but then it will never fall back into the box. Instead it will just keep on going up. I don’t see that happening. I see this stock as being overbought right now. On the daily chart, the weekly chart, sure it looks fine. Maybe this is a bottom, maybe not. But I’m saying this, with this stock, again, it can go a long way down, if the stock continues to move lower, but right now it’s up a resistance. So yes, you like Cramer’s idea, fine, buy Whole Foods ( NASDAQ:WFM ). I’m just saying, don’t buy it here. Wait for the stock to come down into the lower 30.00s. My bet is, at some point over the next few weeks, you’re going to get at least a 10 percent haircut in this stock that you can buy; $30.00, that would really be the top that I would want to pay for that, I mean it.
Okay, Urban Outfitters ( NASDAQ:URBN ), they report great numbers, the stock gapped up and just kept going; Cramer likes this as well. The chart is a mess, so I’ll just say this, again, the chart is an absolute mess, it’s all over the place. I can think of a few chartists that I watch and laugh at, who would find meaning in this, who would give you the perfect trade. I’m not one of those guys. I know what’s knowable and I know what’s not knowable and it’s not knowable, to know whether this is going to continue to go up from this level. This is a big move higher. I will just say this, this is how you trade this stock: If this moves is real, if this is truly a breakaway gap then this is not going to come down and fill the gap. The low, on this day, was $30.50. Now the stock is trading at 32.69, right? So it is now trading 6.7 above where the low was. So if you put your stop just a little below this, say you put it around 30.25 something like that, you’ve got about a 7 percent risk on this stock. That’s not a bad risk to be taking on this stock.
I use the same analysis I would use on Whole Foods ( NASDAQ:WFM ), which is if you’re buying now then you’re saying this box is NEVER going to get filled. Magically this stock is just going to keep on going up, and up, and up. I don’t see that happening either. So if you like Jim’s idea, don’t pile into the stock, DON’T pile in. This is just fresh off of an earnings beat, give it a few days to settle out. By the way, the stock could be up tomorrow, you may buy it at 33.00 and then sell it later on in the day at 35.00 or 36.00 and be laughing at me saying, “That Fitzpatrick doesn’t know squat.” Okay, could be. I’m not saying that it’s not going to go higher from here. What I’m telling you, just based on the “3-Day Rule” you let a stock find it’s level for a few days after earnings and then you take action. So we could see more upside here. I don’t want to participate in that unless I’m in a high maintenance trade on an intraday chart. If I’m looking to get a hold of this stock before it just continues to move, I want to wait for some kind of settling out process before I buy this stock.
And then the last one we’re looking at is Cyberark ( NASDAQ:CYBR ). Cramer was talking to the CEO on Mad Money. Very bullish on the prospects of this company. This is the easiest one yet. Look, the stock is still in a downtrend. The company may have great prospects. I just want to see the STOCK have great prospects. And the way we do that is, we look at the 50-day moving average. I need to see this stock start trading above this level. I need to see it move above 40.00 and stay above 40.00. That’s when I want to buy this stock. If it doesn’t do that, then by definition the downtrend is still intact, I don’t really want to be a part of it.
3 Stocks I Saw on TV Free Chart