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COST, NFLX, TSLA, and LULU
Benzinga PreMarket Prep 8:00AM ET- 9:00AM ET BenzingaTV on YouTube.
COST, NFLX, TSLA, and LULU
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NewsTranscript
00:00 are the four stocks that Jeremy Newsom likes the most?
00:04 Hmm chat you guys throw up yours.
00:07 Okay, stop. He's got him. Costco.
00:09 Costco. We just talked about Costco. All right. Tesla.
00:13 Tesla. It's pretty good one. Netflix. Netflix. I want to put
00:18 Netflix on there. That's an interesting one. Interesting
00:20 phrase.
00:21 And Lulu lemon.
00:25 Lulu lemon stores. Okay, I got to just and again, Lululemon
00:30 unbelievable because I actually was at a mall when I went on a
00:34 little getaway to Niagara Falls there. And I went through this
00:37 mall. And it was dead. I mean, there was nothing happening like
00:42 ghost town tumbleweeds, nothing happening in the mall. The Lulu
00:46 lemon store was packed. Oh, my what the hell? Why are the
00:52 clothes that good and people pay up for this? Not even sales in
00:55 there. They're going up. They're paying $100 for a pair of
00:57 pants. Lulu lemon just has it figured out. I was shocked. It
01:02 was jaw dropper. You're going by and you're like, how's this
01:04 mall business? Like, oh, that's why it's in business. It's got a
01:07 little lemon store. It was packed.
01:08 It is unreal, man. It is a tribe that is strong. And I think it's
01:12 gonna I like how you mentioned the disparity when we were
01:16 logging on Dennis about Dillard's versus Macy's, right?
01:20 So like these bigger retail, all these bargain outlet versus big
01:24 lots is like, who's figuring this out versus not. O'Reilly
01:28 versus advanced auto parts, right? That's a crazy story. And
01:32 so I think Lulu is one of those that did they just figured it
01:35 out. They did something right somewhere and people are
01:37 winning.
01:38 It's just such a weird economy where there's just some stocks
01:44 suffering so badly. And then there's other stocks that
01:47 aren't suffering at all. And it's like the separation and
01:51 maybe the consumer is a little bit strapped for cash, but
01:53 they're choosing what they want to buy and when they want to buy
01:56 it. And you know, even in traditional automotive, you're
01:59 still seeing lots of Tesla's out there. You're still seeing Tesla
02:02 stock hold on strong. And obviously, you know, the other
02:04 General Motors and Ford not into doing well at all, you could say
02:07 it's a strikes, but they were weak well before the strikes
02:10 happened as well. Maybe that was the end. But it's such an
02:13 interesting bifurcation really in the markets.
02:16 Yeah, it's incredible. It's, it's a stock pickers dream, in
02:19 my opinion, like there's so many good trends. You know, I like a
02:23 lot when Joel says this and Dennis too, but we mentioned
02:25 when you're a trader, it's okay to be wrong and it's okay to be
02:29 right. So just hop in what's working, right? Get out of
02:32 whatever's not working and get into what is working. And so if
02:34 you can, if you know what the trend is, I don't know, play it
02:38 right play the trend short something that's going down, buy
02:40 some that's going up. If you're wrong, cut it and move on. Like
02:42 be a trader. It's okay.
02:44 You want to talk about bear gaps today. And you gave us a quite a
02:49 list of stocks to look at. And is there any particular you got
02:54 a little sour look? Did you just want to keep chit chatting?
02:57 Okay.
02:59 Yeah, here's why I'm sour Joel. I'm a permable. You guys know
03:04 that right? I'm usually mythological glasses. markets
03:07 always going higher. But dude, what I'm scrolling through these
03:12 charts.
03:13 Hard to find the bullishness.
03:15 Yeah, it's tough.
03:18 Man, Netflix. I just mentioned Netflix. I know this, that that
03:22 chart on Netflix, the daily and the weekly chart on Netflix
03:26 looks disastrous. I mean, this thing could fall so hard. Look
03:34 at so if you look at the daily chart, notice that gap down on
03:37 earnings in July, how it just it fails. And then if you can pop
03:41 into a weekly match on the bottom right hand side,
03:44 I can do it. I got it.
03:45 This is you, Joel.
03:47 That's Joel, man. Joel is fast. Now he's getting faster and
03:52 older.
03:52 I'll have to come down there and give you a new key, man. I
03:55 don't care. I don't know that you should sue.
03:59 Joel, look at this double top. Look at this double top on
04:03 Netflix. Does he confirmed double top like yeah, lows below
04:07 the neckline. I mean, awful. And we've increased 150 200% in the
04:14 last year and a half. So that means all the upside, which is
04:17 beautiful. It can't sustain that type of upside forever. So we
04:20 need some type of consolidation. Again, I'm not calling for
04:22 Netflix to go to zero. But 300 is very likely in the next five
04:27 or six months. Like that's extremely realistic.
04:29 And be a buyer down there.
04:31 I would be a buyer down there. But between 420 and 400. I'm a
04:36 seller. And I would expect this to go a little bit lower, man.
04:39 It does not look strong. And and I will say that across
04:42 everything. Again, I normally come in here touting, hey, I'm
04:44 bullish on buying everything. But yeah, if I go to the
04:47 experience, yeah, I go to the queues qqq, which I look at a
04:52 lot for the NASDAQ and for like, look at this weekly debacle
04:57 that's going to happen if we take out 357. I mean, that is a
05:02 out of the textbook double top like it's hard to draw it that
05:06 good.
05:06 Yeah, and we and we bounce where we should have yesterday, but
05:11 we're coming right back down here again today. Like we're not
05:14 sustaining any bounce. This is the biggest issue that I've been
05:17 talking with two it's like bounces to start holding and
05:19 anything sell the rip is working so well.
05:22 Is it just the biggest bear bounce ever here, Jeremy? Did
05:30 we ever even get to a bull market?
05:32 I believe so, man. I mean, we went up, you know, on the queues.
05:37 Again, this is all my opinion. All my course, we're gonna make
05:40 a lower high. But if we go for 2023, from the open of January,
05:46 we went up 45% on the queues. I mean, that is bananas. Think
05:53 about a retirement, right? Someone has whatever $600,000 in
05:56 the retirement, they parked in the queues, and they just made a
05:59 45% return. They've only I mean, they got an extra $300,000 of
06:04 growth this year. So for that to pull back a little bit, I mean,
06:10 makes perfect sense. Like if we went from let's just call it
06:13 380 down to back to 320 on the queues, that would still be an
06:19 annual year over year growth of 22%. Which is reasonable. That's
06:25 normal. But that means we got a leak 30 points for the rest of
06:28 the year for that to happen. And if we take out 356, I think
06:33 that's a very likely possibility.