What do you do when a stock has gone up too much? Well, maybe you buy it! Here’s a look at Teck Resources (TCK) (July 29, 2016)
TCK NVDA TCK
Here on this Chart Video I want to talk about Teck Resources ( NYSE:TCK ). Metals have been working really, really well, particularly the precious metals. But this is a stock that totally works, they’ve already reported earnings. Guess what? They were strong, you can see the move. If you look at the weekly chart, clearly this is a bottom. In this case it is pretty clear that this was a low, it’s a key low. Wouldn’t it have been nice to have bought there. The question is, is it too late to buy now? I don’t think it is. This has gone up quite a bit. But think about it, if you looked at the kind of moves that stocks have made since the bottom, you would never buy anything good, because they’ve all gone up so much.
Case in point: NVIDIA ( NASDAQ:NVDA ), Josh Brown was really bullish on NVIDIA ( NASDAQ:NVDA ) saying basically, “Anything that has to do with that stupid Pokémon thing and all this other video stuff, NVIDIA ( NASDAQ:NVDA ) is the ‘big dog’ in the room. They’ve got huge technology for this stuff. And the comment was, “Yes, but it’s already up ‘x’ percent for the year, etcetera, etcetera.” None of that matters, it really doesn’t matter. This stock has taken off for a reason. You can say, “Well it’s too high at 57.00.” Great! Did you say the same thing at 40.00? Did you say the same thing here at 37.00. “Oh! Yes, this is too high here so I’m not going to buy it. Well, if it pulls back a little more, then I’ll buy it.” So you’re still sitting here with a bid under 35.00 and the stock has gone up over 50 percent more from there.
My point is, you don’t know when stocks are done. This was a stock that I covered in Stock Market Mentor, on the daily chart, I can’t remember exactly when, but I’ll tell you this, I got everybody out too soon. I think it was up here saying, “Oh you know, this has gone up quite a bit. You don’t want to buy here. If you’re long sell the stock.” Great! That worked fine, until the next 25 percent move. My point is, don’t LOOK at how much a stock has moved over the past several months or years or something like that. Look at what it’s doing right now. If all that stuff mattered, from months gone by, the only reason it would matter is if you found a flux capacitor and could go back in time and buy the stock. That’s the only reason why this matters as far as how much it’s gone up in a certain amount of time.
So back to Teck ( NYSE:TCK ). Teck Resources ( NYSE:TCK ) has gone up quite a bit, for metals, in a short amount of time. I don’t care. The stock is moving higher. Pretty decent moves this last week on volume; a little bit lower on Friday, but maybe people just got tired. I’m just telling you this, the uptrend is intact here. The only thing I would say is, if you’re long the stock, stay long the stock. If you get an opportunity, either because the stock traded sideways for a while or if it pulled back. If you get an opportunity to buy it closer to the 20-day or certainly the 50-day moving average, you go ahead and take advantage of that. I don’t see any catalyst for this to implode. To where, “Oh my gosh! It’s gone up too much. Now there’s a lot of profit taking.” No, this has actually been a nice gentle move. The only way, in my view, that this stock will stop going up is if it just starts to top out. If it just kind of starts to peter out a little bit. That kind of thing. In which case you’ll have plenty of time to get out. So I would look at this, it’s a go right now. Any opportunity to buy down here is an opportunity that I think you need to take advantage of.
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