3 Stocks I Saw on TV: AAPL TWTR CMG (April 26, 2016)
Every night we watch the same shows, Fast Money and Mad Money. And we want to use those ideas to grow our money. Well good trading takes more than just pushing the buy button, the next morning, on the stocks you saw on TV last night. I’m here to help you make money on these 3 stock I saw on TV. Today we’re going to look at the earnings tickers, Apple ( NASDAQ:AAPL ), Twitter ( NYSE:TWTR ), and Chipotle ( NYSE:CMG ).
First of all Apple ( NASDAQ:AAPL ). Everybody was expecting their revenues to be down. It was the first time, year over year, the company had a decline in revenues. So my question was, in fact I had written about it in a morning note this morning; that you’ve got to watch how Apple ( NASDAQ:AAPL ) trades after earnings. If the revenues are disappointing, if the market is disappointed. Will the stock trade up or down? Because if the stock were to trade up then you have to assume, okay, the bad news is already baked in because we got bad news in the stock moving up, then it’s time to buy Apple ( NASDAQ:AAPL ). Okay, that’s not the case. We get bad news, in fact it was kind of expected only I guess it was worse than expected, so the stock is down.
What do we do with the stock now? First of all, and I’ve mentioned this before, so many times frankly I’ve had some people ask me to quit doggin’ on Apple ( NASDAQ:AAPL ), and I will, as soon as it stops going down. But as far as a longer-term trend, this stock peaked a long time ago. This stock now is in a downtrend, it’s kind of in a confirmed downtrend. Lower high from here. And then we’ve got this low, just about everything tanked on that day, August 24th. And then we have, effectively, a lower low here. And then a lower high here. But there is some silver lining in the dark clouds here. This was well above the lower Bollinger Band, versus this, this fell so far outside of the norm that it just created this massive low; that there’s no way the follow through decline would hit with respect to the distance below the lower Bollinger Band. So it kind of gives you the sense that maybe this stock might be CLOSE to being done going down.
Here’s what I’m saying: If you look at where the stock is trading after hours, now about 97.00, it really just needs to hold above 90.00, but I would say like 93.00 or so. If Apple ( NASDAQ:AAPL ) trades down, to where it is now, on Wednesday morning, if it trades down to here and it holds, then this is probably a good time for you long-term holders to be buying some Apple ( NASDAQ:AAPL ). Again, the trend is still lower and those are stocks that I stay away from because it’s too easy to make money on stocks that are trending higher. But if you’re really, really looking for an entry on Apple ( NASDAQ:AAPL ), make sure it just stays above this level and then go for it.
Okay, Twitter ( NYSE:TWTR ). The company reported revenues that were less than expected. They also guided lower. We’ll just look and see what the stock is doing right now as I look at this. It’s still tanking. It’s still tanking big time. I’m looking at support here, this ultimate support at like $14.00. Nearer term support at about 15.40. Well the stock is kind of pushing against that. Here’s the thing: I actually bought some Twitter ( NYSE:TWTR ) after hours, and if it falls below $15.00 then I’m going to go ahead and get out of it, and I think I’m probably not the only one. This looks like it’s trying to find a bottom, but so far there’s more try than find. This is not good news.
I would steer clear of this stock. Seriously. I would steer clear of this stock until you get the sense, from some closes that are higher than the open, that this $15.00 level is going to hold. And even then this could be in for a long, slow sideways move here. Twitter ( NYSE:TWTR ), I’ve always kind of scratched my head at the market cap, but nobody really cares too much what I think. But I care what the chart thinks and right now you stay away from it unless it shows that 15.00, 15.40, 15.30 is going to hold as support. Then you buy the stock and then be patient, hold it for a while.
Okay, Chipotle ( NYSE:CMG ). This a great example of why you shouldn’t trade crappy charts. Seriously. This has been all over the map. You can look HERE and kind of see what’s going on with this stock. You can see, “Oh well okay, it’s in a downtrend, I get that.” But then we zoom out here. This is just really, really sloppy, everything is drifting sideways and with this pullback here their same store sales dropped. THAT’S A BIG DEAL. It’s the whole E.coli thing. They lost, actually, less than expected. I would say this 400.00 to 410.00 is ultimate support on this stock. But I’m telling you, this is a busted stock. It’s going to take a while for it to recover. They pay NO dividend, so I don’t think you get payed for holding this stock. Sorry to burst your bubble, and I like Chipotle’s ( NYSE:CMG ) food. I just don’t like the stock right now.
3 Stocks I Saw on TV Free Chart