On Friday, U.S. stocks put together a fine rally after the non-farm payrolls report for the month of April was released. That rally continued on Monday, putting a ton of great setups on the map. Here are the top stock trades we’re watching.
Top Stock Trades for Tomorrow #1: Alibaba (BABA)
Before Alibaba Group Holding Ltd (NYSE:BABA) reported earnings last week, we said it needed to push through $185 or pullback to $170 before bulls should buy. The former happened on Friday and continued on Monday. Up over $195 and BABA stock looks like it could retest its highs near $205.
Chinese stocks have some momentum right now, as do cloud stocks. Luckily, BABA fits both.
Top Stock Trades for Tomorrow #2: Adobe (ADBE)
Adobe Systems Incorporated (NASDAQ:ADBE) is a big-time cloud winner too, and the stock has been in a long-term uptrend as a result. Even in the one-year chart above, it’s clear ADBE stock has been nearly unstoppable. With that in mind, $230 has given it trouble over the past few months.
Shares are nowhere near overbought via the RSI (green circle) and momentum has turned bullish via the MACD (blue circle). Further, Adobe is just over the $230 level now and should it take out its highs at $233.17, it should ignite a rally higher as long as the broader market plays ball.
Top Stock Trades for Tomorrow #3: S&P 500 (SPY)
Speaking of the broader market, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is encouraging many stock market bulls Monday. While the declines in February were rather dramatic, the trading over the last few months has been more orderly. There’s still plenty of support for the SPY between $255 and $260 and absent a recession, there’s a lack of reasons to be overly bearish.
With that in mind, the SPY is struggling right near an approximate level of downtrend resistance. The 50-day moving average is acting as resistance too. Short-term bulls may consider lightening up on their longs after a few strong sessions. Those looking for a trade will want to buy a breakout-and-close over these two levels.
Top Stock Trades for Tomorrow #4: Square (SQ)
Below trend-line support last week, and we were leery on Square Inc (NYSE:SQ). But it held above its 100-day moving average and it’s moving well on Monday. So long as it’s above the 100-day and trendline support, it can continue higher.
Over $52.50 and the $57.50 highs are back in target. Along with similar observations to Adobe, both the RSI and MACD shouldn’t hamper upside in SQ stock.
Top Stock Trades for Tomorrow #5: AMC (AMC)
Luckily for traders, AMC Entertainment Holdings Inc (NYSE:AMC) has some pretty cut-and-dry levels. Previously acting as resistance, $16 should now be support. Should AMC breakout over its recent highs near $18, the $19.50 gap-fill level is in play.
Additionally, the 50-day, 100-day and 200-day moving averages should all act as support. Note that AMC reports earnings on Monday after the close, though. Let’s see if the quarterly results can push AMC over $18 or if $16 holds on a pullback. That could give both bears and bulls something to chew on.