3 Stocks I Saw on TV (ABC, SWKS, AGN, NXPI) (May 6, 2016)
ABC SWKS ABC SWKS NXPI SWKS ABC NXPI AGN
Every night we watch the same shows, Fast Money and Mad Money, and we want to use those ideas to grow OUR money. Well good trading takes more then just punching the buy button, the next morning, on stocks that you saw last night on TV. I’m here to help you make money on THESE 3 stocks I saw on TV. Today we’re going to look at few stocks that Cramer covered on Mad Money, on Friday.
First is AmerisourceBergen ( NYSE:ABC ), otherwise known as ABC, 123, more than a Jackson 5 song. These guys are in the drug distribution industry, basically the biggest, and Cramer said the industry is getting killed. So even though ABC ( NYSE:ABC ) is down, two days in a row, Cramer doesn’t want you to step in here and buy this. I’ve seen Jim basically step in front of freight trains and then ultimately turn out to be right. The guy can buy stuff on the way down, sometimes it works, sometimes it doesn’t. So to me that gives more credence to his call when he’s NOT saying, “Wow! This is really taking it in the shorts.” This is like, “Oh my gosh! What an awesome buying opportunity!” He’s NOT doing that. So that means something to me. If Cramer sees a stock that’s gone down like this has, and he says, “You know what? I don’t think the bloodbath is over.” Then trust me, it’s not. So, stay away from this stock. I think Cramer is right, just because I’ve seen Cramer do this stuff for 20 years.
Okay, Skyworks Solutions ( NASDAQ:SWKS ). His deal on this: Do you see anything in common in these charts? This is really nasty. Cramer looks at this and says, “Alright, decent company. But why would you want to be in this stock when it is so levered to the cell phone industry?” He would rather you would be in NXPI ( NASDAQ:NXPI ). Do you see anything interesting about this chart? Up above the 50-day and the 200-day moving average, and it’s working. Skyworks ( NASDAQ:SWKS ), not so much. ABC ( NYSE:ABC ), not so much. So NXPI ( NASDAQ:NXPI ), I’m looking at charts when I mention ABC ( NYSE:ABC ) and compare it with Skyworks ( NASDAQ:SWKS ), just the charts, not the industries, obviously. So Cramer looks at NXPI ( NASDAQ:NXPI ) and this is where he wants you to be, not Skyworks ( NASDAQ:SWKS ).
Now, Allergan ( NYSE:AGN ). This has been a fast ride to heaven’s basement, and Cramer doesn’t think that this is done going down. This is the power of these volatility squeezes. Sideways consolidation on a weekly time frame, and this lower high, lower high still, now we’re printing lower lows. Cramer is not really looking at it from the chart standpoint, he’s just looking at it as a business. It’s probably due for an oversold bounce on Monday or Tuesday, but this is not one that you want to be stepping in front of. AGAIN, I’ve got to say it, it’s due for an oversold bounce on Monday or Tuesday. Just look at how far below the 200-day moving average this is, 30 percent. The 50-day moving average, not that much, 20 percent. That’s a big dislocation below the 200 and below the 50-day moving average. That’s a big dislocation, so look for a trading bounce. But for anything more than that; you don’t want to buy these falling knives, when you try to catch them you just get bloody and that doesn’t work real well.
3 Stocks I Saw on TV Free Chart