3 Stocks I Saw on TV (AMZN, SWHC, TASR) (July 8, 2016)
AMZN SWHC Tasr
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 pushing the buy button, in the 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.
The first one HAS to be Amazon ( NASDAQ:AMZN ). All time high, again. This is a stock that has been going up forever; and I haven’t’ even taken it all the way back. So what do you do? July 28th, that is the day the company reports earnings and the stock has been squeezing, trading in a nice consolidation pattern, really for how long? Almost two months. That’s a long time for Amazon ( NASDAQ:AMZN ). And now it’s breaking to the upside. So what is this telling us? It’s telling us that big money is interested in owning this stock, before they report earnings. So there’s an expectation of strong earnings. Fine. I’m doing this video on July 8th. That means that they report earnings in 20 days. Do you know how much this stock can move in 20 days? Here’s my bet: I think this stock could actually move up to, I’ll say it, $800.00, before earnings, if the market cooperates. The market is on a little bit of a tear now. And by the way, I guess you could say I predicted it. I don’t like to do that, but I’ll just say this: As the stock moves higher I want to be keeping a trailing stop along with it. Right underneath so that if it hiccups I’m out of there with a really nice profit. By the way, calls tend to work pretty good on this. That’s it for Amazon ( NASDAQ:AMZN ). I think it’s definitely a buy before this company reports earnings.
Now, Smith & Wesson ( NASDAQ:SWHC ). Because of the tragic shootings in Dallas, and there are a couple other police shootings, they’re wrecking my country. Anyway, a lot of the stuff went up, in fact I’ll get to Taser ( NASDAQ:TASR ) in just a second. So what are you going to do with Smith & Wesson ( NASDAQ:SWHC ) here? They report earnings in a couple months, right towards the end of August. So there’s a long time for this stock to do a lot of stuff. What I would suggest is, frankly, give this stock some room. This is where the stock peaked last time, it’s right up there again. It was kind of a gap and crap, really. This was a strong market day; where the stock gapped up to this level and then really kind of immediately started trading lower. So I think you want to be careful about buying this stock right now. Frankly, I think this was kind of a snap reflex trade here on Smith & Wesson ( NASDAQ:SWHC ). Think about it, what’s happening, is this going to make there be a greater propensity for gun sales than in the last nineteen terrorist attacks? So I think this was a little bit of a reflex move. My bet is there will probably be some selling into this. I like Smith & Wesson ( NASDAQ:SWHC ), shoots pretty well, and the stock trades pretty well. But I think this is not the time you want to buy Smith & Wesson ( NASDAQ:SWHC ).
Now, what about the other stock, Taser ( NASDAQ:TASR )? This is one that I’ve been featuring in Stock Market Mentor for a while because it broke out of this volatility squeeze. Hey, don’t taze me, bro. So then I’m looking at this, noting this is a really nice uptrend, and then lo and behold we get the issue in Dallas, and they do more than just tazers, body cameras and stuff like that. This is a stock that could move a little bit higher, over 20 percent of the float is short. That’s a pretty significant short interest. The chart is kind of sloppy, but generally speaking this is a high momentum stock. I think you can make another 10 percent on this thing. And think about it, think about taking the other side of the trade. In light of everything that’s happening, is there anybody that’s really going to be a big seller of Taser ( NASDAQ:TASR ) right here? I would say, no. So I think you can ride this thing for a bit.
3 Stocks I Saw on TV Free Chart