Is Tiffany (TIF) a gem for Tuesday? (January 15, 2016)
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Tiffany’s ( NYSE:TIF ): The stock traded up on Friday essentially making Thursday an inside day. Or put another way, Friday was a BULLISH engulfing pattern. Where the prior day, that’s Thursday, it’s intraday high and low were TOTALLY dwarfed, TOTALLY engulfed by Friday’s action to the upside. So you got a gap down, like every other stupid thing on Friday, other than inverse ETF’s, and a move above Thursday’s intraday high. This is a bullish reversal pattern here. So what I want you to do is, consider buying this stock. The intraday low is 65.09, we’ll call it 65.00. So you buy this stock and you can keep a stop at, we’ll call it 64.90, something like that. You’re risking a few bucks, you’re risking $4.00, LESS than 10 percent. You’re buying Tiffany’s ( NYSE:TIF ), and I’m sure they’ve got some fine jewelry, and I’m sure that other people are going to be happy to wear it (not me, we don’t do that).
So I would suggest buying this stock. If the stock trades above $69.00, then buy a little bit more. If the stock trades below this intraday low of 65.09, again, we’ll call it 64.50, then you’re NOT going to be buying more because the stock hasn’t traded up above $69.00 and you’ll be selling what you had. So this is a low-risk trade I think with a high probability make at least 5 percent or so. Now you could say, “Well Dan, 5 percent, it’s not that big a deal.” Look, I’m doing the best I can. This is a really, really brutal market, really tough. I think we’re oversold in a big way. At some point next week we’re going to get a really, really nice rally and Tiffany’s ( NYSE:TIF ) is one of those stock that’s REALLY starting to lead the charge.
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