All eyes are on Apple Inc. (NASDAQ:AAPL) Tuesday afternoon, as we gear up to hear what record amount of capital the company will return to investors. Until Wednesday though, we won’t know how to trade the name. Here are five top stock trades we’re watching until then.
Top Stock Trades for Tomorrow #1: GE Stock
I have been leery of General Electric Company (NYSE:GE) because of how often the stock gives investors a false bottom.
Are we at risk of seeing another false bottom form? Technically, yes. There’s still time for bulls to prevent that from happening though. We looked at GE right after earnings and said it needs to get above $14 and the 50-day moving average. GE stock did that, but now those levels need to hold.
For now, $14 and the 50-day are doing just that. Should they give way though, $13 is back on the table and if that happens, new lows are possible. If that happens, bulls should stay clear. GE is a no-touch for me, personally.
Top Stock Trades for Tomorrow #2: JD Stock
Like GE, JD.Com Inc(ADR) (NASDAQ:JD) is a name we recently looked at. With it clinging to support and with a solid underlying business, we thought JD was worth a shot.
Granted, we felt that way should $36 hold as support. So far it has and as a result, JD stock is still worth a shot. The sharp downtrend line near $38 is JD’s second big test. If it fails, $36 is back on the table, while a move above it gives bulls an opportunity to add to their position. For bears, failure to break $36 is likely a sign to book profits. Bulls can stay long over $36.
Top Stock Trades for Tomorrow #3: Caterpillar Stock
After surging from ~$60 in January 2016 to $170 two year later, it makes sense Caterpillar Inc. (NYSE:CAT) has been cooling off.
Below $145 makes me a bit leery of CAT at this point. It’s one of those, “buy if it holds, but let’s see if it folds” kind of setups. Meaning that, I don’t want to bet that support will hold on CAT. But I would be willing to buy the stock if support does hold up.
Also, apologies for all the trend-lines drawn on the chart above. In April, CAT broke above downtrend resistance and looked to be back on track. That setup didn’t pan out, though With the 200-day near $140, as well as support from the April low, we’re hoping for at least some stabilization near current levels. In this market though, it’s hard to get overly bullish on anything.
For Caterpillar, let’s see if support holds and if it can push through resistance near $145. Then we can revisit it.
Top Stock Trades for Tomorrow #4: Amazon Stock
Not long ago we outlined where investors should buy the stock near $1,500 and again at $1,450. For those that held through earnings, they’re sitting on hefty gains. Now what? A lower high in April set up a temporary downtrend line of resistance. These aren’t always bad and in this case, with AMZN holding up on the topside of resistance, that’s good news.
With AMZN over this level, a retest of the highs is in the cards. Below it and bears could make a run toward $1,500.
Top Stock Trades for Tomorrow #5: Intel Stock
“Why do we like Intel as one of our top stock trades, despite it falling on great news? The latter part of that setup isn’t great, but the secular story is too promising and there’s too much support to ignore INTC near current levels.”
With INTC stock holding up well above the $50 level, I continue to like it on the long side. I’d be a buyer in the low-$50s and add on a strong close over the $53 to $54 level.
From there, a retest of the highs should be in the cards. Bulls can bail on a close below trend-line support near $50.