3 Stocks I Saw on TV (AMZN GOOGL EXPE) (July 28, 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, the next morning, to get the stocks you saw on TV last night into your portfolio. I’m here to help you make money on THESE 3 stocks I saw on TV. We’re going to look at some earnings trades here.
First of all, first and foremost is Amazon ( NASDAQ:AMZN ). The company blew away earnings and revenues and the stock is up; surprising not that many people. The stock had been trading sideways for a quite a while. Here’s the question you shouldn’t ask: Should I be long Amazon ( NASDAQ:AMZN )? The answer would be, yes, of course. Yes, the stock will ultimately move higher. The question you want to ask yourself is: What the heck is this thing going to do tomorrow morning? You can see how it’s traded in after hours. By the way, this first move tends to be wrong. Sometimes a second or third move tends to be wrong in the after hours trading. You just never really know what’s truly happening. Ultimately the stock finds it’s own level. But it was just interesting how the stock is trading down to 720.00. I’m sure there are some folks who are selling Amazon ( NASDAQ:AMZN ) going, “I don’t get it, they beat earnings and revenues, but I’ve got to sell my stock.” And then 15-minutes later the stock is up $50.00. So this is a real anaconda that you’re wrestling here.
My suggestion is this: If you’re long the stock right now, then take some of your position off tomorrow at the open. Not all of it. Don’t sell everything. They had great numbers. The stock is up. Okay, great! That’s what happens. But the stock ultimately should pullback a bit. But we don’t know when that’s going to happen. I SERIOUSLY doubt this is going to be a gap and crap. This is a little bit better business model than Zuck’s company, which by the way, is probably the number two best business model, so I shutter to think what would happen if Amazon ( NASDAQ:AMZN ) decides to go full-on Facebook ( NASDAQ:FB ). The bottom line is though, you want to be long Amazon ( NASDAQ:AMZN ). If you already are, take a little bit off the table, let the rest run. Even if the stock pulls all the way back, you’re in the stock already, you’ve got to be a believer in it, there’s nothing wrong with this earnings report. The stock is going to be up, ring the cash register a bit, let the rest run, zoom out, and that’s really what you’re looking at. So this one works.
Now another one, I continue to call it Google ( NASDAQ:GOOGL ) just because I think Alphabet is about the dumbest name I’ve ever heard of, unless it’s a soup. The stock is gapping up to $800.00; the all-time high was back here, which is just a little bit above $800.00, about 810.00. This has been in a long sideways consolidation. Just out of DICSIPLINE you need to sell into this. Again, just like Amazon ( NASDAQ:AMZN ), if you’re long don’t sell your whole position, because if you do and then the stock is up to 850.00 you’re going to be yelling at me. Instead take some of your money off the table, then if the stock continues to run, at least you’ve got some of that stock, and you’ve also got a little cash to maybe buy some Amazon ( NASDAQ:AMZN ). But ultimately Google ( NASDAQ:GOOGL ) will work. It’s just up so much you just almost have to take profits.
Expedia ( NASDAQ:EXPE ), this is the other side of the coin. They beat their earnings estimates but they missed on revenues. And in most instances folks are more interested in revenues than earnings. Revenues can’t be manipulated, much, but earnings can definitely be manipulated. So what do we do with Expedia ( NASDAQ:EXPE )? Well, not much, because the stock has been trading sideways for quite a while. Resistance is about 120.00. Support down about 100.00. The stock is now gapping right back down to where? The 50-day moving average. You will probably get some kind of a bounce on this tomorrow. So buy or sell at the open? I would probably buy, just to take kind of a little ride to the upside, but there’s really not that much in this stock. Again, unless you’re day trading. In which case then I need to be doing this video at 9:28 in the morning, but that’s not happening, obviously. So with this, I think you’ve just got to look at this, it’s a range-bound stock. Why do you want to mess around with this? There plenty of other stocks that you can buy that AREN’T in a range.