I am going to go through our three stocks for the week, Beyond Meat ( NASDAQ: BYND ), Apple ( NASDAQ: AAPL ), and Amazon ( NASDAQ: AMZN ).
First of all, just as I had kind of figured, after the way this stock, ( NASDAQ: BYND ), traded yesterday, on this little breakout, we got a nice move today into the open. The stock moved well, up a bit. The thing that is impressive to me is that the stock has printed a higher low and a higher high today. It closed, actually, very near the intraday low. You can see the stock gapped up $200.00 on the nose. It ran up almost 5 percent, up to almost 210.00 and then closed down about $5.00 from where it opened. This is a stock that today we look at as having been sold into strength. This is something that you need to understand if you are going to be trading successfully; because if you don’t understand this concept of selling into strength you are going to wind up buying high and then selling low and that’s really not the way to make money.
So here’s what I would suggest doing on this: Give the stock a day or two; don’t be afraid to buy the stock, it’s very overextended as far as where it opened. But if the stock trades below 200.00 definitely watch it and see how it trades right along this 8-day exponential moving average, which right now is about 180.00 or so. You don’t need to get real cute with this stock, try to buy it on any kind of dip. The idea is, that you want to buy this stock as close as possible to an identifiable level of support so that you are basically not risking a lot of money in order to play the game. So you figure out where the identifiable level of support is here and I would say around 180.00, buy it as close to that as you can. And then just based on your theory go ahead and put a stop just a little bit below that.
Let’s look at Amazon ( NASDAQ: AMZN ). By the way, the idea is that we are looking for the company to be reporting earnings Thursday after the close. This gives the stock a couple of days to start running up. Now, I don’t know what’s going to happen when the company announces earnings, it could go either way. But right now I have kind of adjusted things around and we’ve got a potential move up to 2075.00 on this. I have a very, very small speculative bull call spread going on this stock; VERY speculative. And anything that I take that is super speculative, it’s really small and that is what I would suggest you do. Any kind of trading of this big anaconda like Amazon ( NASDAQ: AMZN ), any trading around earnings, make sure that your position is small. If you are RIGHT you get to make a bunch of money. If you are wrong you are really not going to lose that much.
And then finally, Apple ( NASDAQ: AAPL ). My sense was that this is a stock that is going to run into earnings and it is, earnings aren’t until next week, right? So I can see this stock easily running another 5-10 points or so before the company reports earnings. What happens then is not mine to say and it is not yours either but I think that this stock has some pretty good momentum today. The Nasdaq ( INDEXNASDAQ: NDX ) is firm, which is a good thing and there just tends to be a lift under there tech stocks so I would still be long Apple ( NASDAQ: AAPL ) right now.