3 Stocks I Saw on TV (AAPL, SHAK, JWN) (May 12, 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 stock you saw on TV last night. I’m here to help you make money on THESE 3 stocks I saw on TV.
We’re going to start with Apple ( NASDAQ:AAPL ). I’ve talked about Apple ( NASDAQ:AAPL ) for a long time, mostly negative, I’m going to continue that. But here’s what you’ve got to know: This is a stock that for the first time in ages traded below 90.00; even though it was only for part of the day. This is a big deal, because it was on volume. The stock closed down, and what this tells you, with this high volume is, there’s just not a lot of buying interest out there. Now you look on TV (this is one of the stock I saw on TV), OMG! Everybody comes up with a different reason to own Apple ( NASDAQ:AAPL ), and that’s fine. I saw one guy say, “Hey, if your time horizon is two years or more, and you’re patient, I think you’re going to be very happy here.” The ticker that comes to mind when I hear that is ROFLMAO, it just doesn’t work for me.
But here’s the deal, apparently there was a rumor that Apple ( NASDAQ:AAPL ) is not going to be offering music downloads any more on iTunes. They’re going to be going for their music service. They said no. I just think, first of all, ultimately, if they wind up doing that, it didn’t work too shabby for Netflix ( NASDAQ:NFLX ), did it? The point is, there’s not a lot of good news that’s surrounding this stock right now. And the fact that it’s traded below 90.00 tells me that this is a stock that’s likely going lower. With that said though, and I’ve got a short position on Apple ( NASDAQ:AAPL ), not a big one, but I do. Here’s the deal: You see a one, two, I guess three, maybe it’s a fourple top here at about 132.00. We get a big down move, up, a little bit lower low, lower high, lower low still, but if we’re just going to continue this zigzag you’d expect some kind of a bounce.
Here’s what I want you to watch for: I want you to watch for the extent or the strength of the bounce. Because if it’s a small bounce, if it’s a weak bounce, that tells you even MORE that folks are not interested in owning this stock at this level. And what it should also show you is, there’s a lot of money managers, big money, the kind of stuff that makes 75 million shares trade in a day, there’s a lot of money that’s liquidating this stuff. Carl Ichan did a long time ago, at higher prices, I think. This is just not really where you want to be right now. And don’t get the wrong idea, I’m not really doggin on Apple ( NASDAQ:AAPL ), I’m just trying to keep you on the right side of the trend. And no matter which way you cut it, if you’re going to be objective, it’s the 200-day moving average, 50-day, 20, price, in that order from high to low, they’re all trending lower. Not really where you want to be right now. Just think of it this way, this Apple is still falling from the tree.
Okay, Shake Shack ( NYSE:SHAK ). They reported slightly better than estimated revenues. The stock is up a little bit. You couldn’t expect a really huge move out of this. I’ll use the same rationale that I did for Apple ( NASDAQ:AAPL ), just look at the moving averages. The 200-day trending lower, below that is 20, below that or right around the same area is the 50-day moving average, and finally the price. So what this is doing more than anything else, is establishing where the bottom is in Shake Shack ( NYSE:SHAK ). Look at this, this is kind of a base. I’ve never eaten at Shake Shack ( NYSE:SHAK ), but I’ll be their shakes are pretty good. I would be careful about buying this stock right now, because I just think it’s probably going to churn around for a while. I would rather just steer clear of this until it either pulled back and then rebounded again. Or frankly, I’d be putting my money elsewhere and waiting for it to break through 40.00, which tells us that the base is complete. The bottom line on this stuff is, in my trading account, I don’t really like to hold stuff as it builds bases. Because you just don’t know how long it’s going to take for that base to be built and then ultimately the stock springs higher.
Now, Nordstrom ( NYSE:JWN ), not so good. They made money, just about half as much as they were estimated to make. This is a stock that you don’t want to be in. This could go a lot lower than this. Tomorrow, with this kind of move, it’s down over 10 percent, frankly, you’ll probably see an oversold bounce here, but from this level. You’re not going to get a move higher. Look what happened to Macy’s ( NYSE:M ), that was ugly. It didn’t really move much today. By the way, tomorrow, you could see a little move up here on Macy’s ( NYSE:M ). But I’m not talking about Macy’s ( NYSE:M ), I’m talking about Nordstrom ( NYSE:JWN ). So wherever the stock trades tomorrow. IF you are buying it make sure you are buying it at a higher level than the opening print, wherever that is. Just don’t be buying it on the way down. If you’re thinking you’re getting a bargain on Nordstrom ( NYSE:JWN ), you’re not. They have the Men’s Half Yearly Sale, which I like. The Women’s Half Yearly Sale, which for various reasons I don’t really like. But then they’ve got the stock sale, this is not it. Ultimately this stock goes lower, but you’ll probably get a snapback here for a day or two.
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