3 Stocks I Saw on TV (RH IP GLD) (June 08, 2016)
RH IP GLD
Every night we watch the same shows, Fast Money and Mad Money, and we want to USE those ideas the grow OUR money. Well good trading takes more than just punching the buy button, the next morning, to get the stocks you saw on TV last night. I’m here to help you make money on THESE 3 stocks I saw on TV.
First of all Restoration Hardware ( NYSE:RH ). You can see this company’s stock has been absolutely crushed. From over $100.00 it basically lost two-thirds of it’s market cap, and then came earnings. The company reported some pretty nasty earnings, they actually lost 5 cents a share in the first quarter. Versus, I think they made 5 cents a share last quarter, last year during the first quarter. Anyway, their revenue grew, but their same-store sales, which is like the big deal, the growth was below estimates, so the stock got crushed. Now, here’s the thing, this is a 1-minute chart, after hours, the stock traded down for quite a bit. And then at SOME point somebody came in and took, in Wall Street terms a quarter of a million shares isn’t a big amount of money, but this is basically the floor here, right now.
So my suggestion on this is, respect the downtrend, but also be opportunistic. If this stock starts rallying tomorrow morning, as long as it’s staying above the opening print, I think this is a stock that you can be making a TRADE on. You’ve got respect the long-term downtrend, but you want to see THIS kind of climax. You want to see this kind of crescendo in volume. We see what happened here, but you can say, “You know what? I think this trade is to the upside.” Ultimately it didn’t really work out here, but you didn’t loose money either. You could see we really didn’t get that much of a bounce. So here, watch this. DO NOT sell this stock tomorrow morning. If you bought the stock because you think they’re going to report great earnings, why you would do that in the retail space I don’t know, but if you did that don’t sell first thing in the morning. Let the stock kind of find it’s level and then you’LL probably even want to get long.
Okay, International Paper ( NYSE:IP ). Cramer was talking about this on Mad Money. He just likes this company, and he kind of uses it as one of the barometers the economy. Seventy-five percent of International Paper’s ( NYSE:IP ) business is domestic. You know what they do, corrugated boxes. Next time you go to the UPS Store, you’re probably shipping your stuff in a box made by International Paper ( NYSE:IP ). Anyway, so I’m looking at this, this is a stock that you can buy. In my view, not as a trade right now, if you’re looking to trade try to wait for a little bit of a pullback. Or, make sure that the stock is going to breakout, say above 45.00. But if you’re just looking at the chart, this was a big low. This consolidation here, on the weekly chart, is starting to give way to the upside. So ultimately IP ( NYSE:IP ) goes higher, and that’s a good thing for our economy, right?
Then comes gold ( NYSEARCA:GLD ). Peter Schiff was on Fast Money, having it out with Tim Seymour. I just wanted to cover gold ( NYSEARCA:GLD ) for this reason. Schiff of course says it’s going to the moon. Seymour says, where’s the beef? I don’t need to recount their arguments. I’m just looking at this: This is right in the middle of a range. Don’t buy gold ( NYSEARCA:GLD ) here at $120.00 Hopefully we’ll get some kind of pullback where you can get it below 120.00, the high teens, 118.00, 116.00. Or, if you must, wait for a breakout. But buying this right in the middle of the range isn’t really, in my view, a great idea. But ultimately, here’s the weekly chart, support at 115.00, after a NASTY downtrend here. So I think this stock works. Support is here, look for this kind of move. I think gold ( NYSEARCA:GLD ) is going higher in the long run. Short-term though, got to wait for a better entry.
3 Stocks I Saw on TV Free Chart