3 Stocks I Saw on TV: AAPL, UA, XOM (April 25, 2016)
Every night we watch the same shows, Fast Money and Mad Money. And we want to use those ideas to grow our money, right? Well good trading takes more than just pushing the buy button the next morning on stocks you saw last night on TV. I’m here to help you make money on these 3 stocks that I saw on TV.
First up is Apple ( NASDAQ:AAPL ). They report earnings tomorrow afternoon, right? Well, I was watching what they were saying on Fast Money Monday night, and everybody knows that they’re going to report crappy earnings tomorrow. Like it’s the first time their revenues are going to drop, like this century. I’m looking at the trend here, this is in a downtrend. I was bullish on Apple ( NASDAQ:AAPL ) for a while, during this little run here, just as a trade. But I’m looking at this, and longer-term, it’s still in a downtrend. I think you want to be really careful about this. Karen Finerman was saying she just hopes that they’re going to say that they were conservative in their guidance. I think that this is a stock that you want to avoid for a couple different reasons.
First of all it is in a downtrend. They could report earnings that just are less bad than people think. How much do you think the stock is going to move up if that’s the case? It might be good for a trade, if you want to gamble over earnings, that’s fine. But I want you to keep something in mind, I say this company got “Smith & Wessoned”. And what I mean by that is, and there is a report that was just out today about this, that Apple’s iPhone 6 was such a great thing that it kind of front-loaded their revenues. It’s a little bit like what we’ve seen with the gun companies, where there has been so much demand for guns, for various reasons, that I’m not going to go into now, that everybody who was thinking about it, did it. Those, that of course, weren’t thinking about it, some of them started thinking about it, and then did it, others couldn’t care less, right?
So it’s the same thing with Apple ( NASDAQ:AAPL ); if they’ve front-loaded all this revenue from the iPhone 6, and most of their revenues come from the iPhone. If they got all their revenue up front then what the heck are they going to do this quarter, and next quarter, and the quarter after that? Those are things that I think really matter if you’re looking at fundamentals. But if you’re just looking at charts I’m telling you, there’s not one trend trader, whose any good at all, that’s going to tell you this is a stock that you want to buy. If they’re telling you that, then they’re not a trend trader, or they’re just not very good, but they can’t be both. So just stay away from this one. Wait to see what happens in response to earnings. It WILL move one way or another.
Under Armour ( NYSE:UA ); Steph Curry, the big news was Steph sprained his MCL. And Fast Money, I just saw a blurb, Melissa was saying the stock was struggling, the stock is taking a hit. Dude! A 40 cent pullback after a move that went almost as high as 9 percent, that’s not the stock taking a hit. If Steph Curry had bounced back and it’s all happy, happy, joy, joy, and he sunk twelve 3-pointers right in a row, this stock would still be resting. That’s what these stock do. This is why, as much as I like Under Armour ( NYSE:UA ), this is not why you want to buy a stock when it pops up right after earnings. Let it sit for a few days. If it runs with out you, you know what? Just consider it a missed opportunity, in your life there will be plenty more of those. But you let the stock settle in.
Here’s what I’m telling you: When this guy comes back, assuming this is not Under Armour ( NYSE:UA ), but this is like the Steph Curry company. When that guy comes back in a couple weeks then everybody is going to be all, “Oh! He’s back! Look at the stock!” Okay, it doesn’t matter. He’s out for two weeks. Who gives a rip, other than the Warriors? I’m telling you this, as a guy who practiced physical therapy for several years (that’s what my education is in), if he tore his ACL, game over, he’s done, he can’t even push a shopping cart around the supermarket. But he just sprained his MCL, he’ll be back in a couple weeks. And I’m telling you, this is NOTHING to the stock. NOTHING. It’s an interesting story and for the next couple weeks everybody’s going to be wondering what’s happening. But as far as the stock goes, as far as sales of the Steph Curry magic basketball shoe, whatever it’s called, it’s not going to make one bit of difference. You buy this stock on and weakness. Enough about that.
Next, Exxon Mobil ( NYSE:XOM ). They report earnings on Friday. Some of the Fast Money guys were talking about this. Guy Adami, he likes the company, he just kind of thinks they might have a tough time justifying their valuation. Pete on the other hand says that chemicals makeup almost a quarter of their earnings, and that’s kind of a big deal. By the way, all you’ve got to do is look at some of the chemical stocks, DuPont ( NYSE:DD ), actually doing just fine. Dow Chemical ( NYSE:DOW ), also doing just fine. Monsanto ( NYSE:MON ), not so much. Mosaic ( NYSE:MOS ), not so much. But now we’re getting back to Exxon Mobil ( NYSE:XOM ). So he thinks this kind of diversification is a good thing.
We’ll listen to what Adami says. We’ll listen to what Najarian says. And now we will look at the chart. Your support for this uptrending stock is right at the 50-day moving average. The stock has come out of a volatility squeeze; energy was down. Note this, it’s down a quarter of a percent today. Oil ( NYSEARCA:USO ) was down, supposedly big time, whatever. Down today, up tomorrow. Exxon Mobil ( NYSE:XOM ) was really strong though. I think you can buy this stock and hold it through earnings. Make sure you’re a long-term holder; and seriously, this up here is a good thing to have. A 3.3 percent dividend yield for holding a mega-cap energy stock, this is where you want to be.
3 Stocks I Saw on TV Free Chart