3 Stocks I Saw on TV (CSCO, CRM, LB) (May 18, 2016)
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, every morning, on the stocks 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 look at earnings now.
Cisco ( NASDAQ:CSCO ) reported some pretty solid earnings. The stock is up after hours, not a huge amount, unless you call 6 percent huge. This is a stock that I would not be buying into the open tomorrow. A 6 percent gap is a pretty big gap. Particularly since it’s gapping right up into resistance. Now, if it stock gaps up and keeps running, we’ll say up to here, maybe 29.00. Sure, the stock might be moving up even more, but I’m just saying, as a function of risk management this is a stock that you wish you had bought back here, on the way down. And then you would wind up selling it into this strength. So Cisco ( NASDAQ:CSCO ), love the fact that they’re making money. Love the fact that they beat. But it’s not a trading opportunity. Frankly, it’s probably a pretty good shorting opportunity, a 59-minute trading opportunity here. So that’s all I think about that.
Now Salesforce ( NYSE:CRM ). This is a similar dynamic. They reported strong earnings, the stock is up about 6 percent after hours. I believe this is an all-time high. So it’s gapped up to an all-time high. This is another one where I wouldn’t be buying it at the open, because it’s a 6 percent gap up at an all-time high, kind of a jiggy market here. Maybe you’ll make a buck or two if you do, but I would instead watch and see how it opens. If you’re long the stock frankly, I’d be selling into strength. And I like Salesforce ( NYSE:CRM ), I’m just looking at this pattern here. It’s a risky stock to buy. See, on These 3 Stocks I Saw on TV I’m helping you make money, basically by keeping you out of trades. Great! Thanks Dan.
Okay, then L Brands ( NYSE:LB ). This is a different deal. Remember back here they reported, I think it was their same-store sales, although I don’t remember, but they released something, it wasn’t earnings, that essentially said, “Things are stinking up the joint and they’re not getting any better.” So the stock gapped down, sold off, continued to sell. So now they report earnings, and guess what? They were bad. So now the stock really trades down. Believe it or not this is the one, out of Cisco ( NASDAQ:CSCO ), Salesforce ( NYSE:CRM ), or L Brands ( NYSE:LB ), this is one that I would be looking to BUY at the open tomorrow or close to it. You want to make sure that the stock is trading ABOVE wherever the opening print was.
We could probably see some more downgrades tomorrow from some of the penguins who should have been downgrading it before. But at some point this stock is going to be done going down and it’s going to at least give you a little trade. So you buy the stock after the open and then as long as the stock is trading above the opening print you’re pretty good to go, I think. We look at three standard derivations, that’s clear down here, so it won’t be THAT extended based on this chart; it’s a chart that I look at for super extended stocks, but you probably get a little bit of a rebound tomorrow. Just use stops. It’s always important to know exactly how much money you’re willing to lose on the trade. If you don’t know what that amount is, then you should not be making that trade.
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