On Friday, stocks digested the big rally over the past week, with many names trading in a rather tight range. That’s something we haven’t seen in a while, with markets more volatile in 2018 vs 2017. In any regard, here are the top stock trades we’re watching for this week.
Top Stock Trades for Monday #1: Nvidia (NVDA)
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Sitting on Twitter Inc (NYSE:TWTR) waiting for the earnings release from Nvidia Corporation (NASDAQ:NVDA) was like watching gamblers at the Kentucky Derby watching the ponies run the track.
The company crushed earnings expectations but failed to rally after the release. Surprisingly, many couldn’t understand why. “The results were great, what gives?!”
The results were great, but NVDA has rallied some $40 per share or 20% in just a few trading sessions. How much near-term upside could there have been?
Keep it simple: Over $250 is good for bulls. Under and investors will have to look for support between $230 and $240. The secular story here is great and for long-term investors, they can justify gobbling up the stock on any pullback, slight or significant.
Top Stock Trades for Monday #2: Symantec (SYMC)
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Symantec Corporation (NASDAQ:SYMC) plunged 33% Friday on news that it’s going through an internal audit. Worse-than-expected guidance for next quarter and the full year, along with a relatively mum management team on the audit didn’t help.
For the brave bulls who feel they need to play SYMC for a bounce, at least wait until it’s above $20. SYMC dropping below this mark is somewhat significant given how far shares fell Friday, especially when looking at the long-term chart. I won’t be putting a bid in on this name, but keep your risk limited if you plan to.
Top Stock Trades for Monday #3: Biotech ETF (IBB)
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On Thursday we took a closer look at the iShares NASDAQ Biotechnology Index (ETF) (NASDAQ:IBB), pointing out where the short-term support and resistance levels were.
With the biotech group in focus on Friday due to the President’s comments on drug prices, the IBB jumped 2.75%. Above is a three-year weekly chart. If IBB can get over $110, it could gain some serious momentum as 2018 wears on. Thursday’s outlook shows why that may be easier said than done, though.
Top Stock Trades for Monday #4: CVS Health (CVS)
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CVS Health Corp (NYSE:CVS) also caught a much-needed bounce on Friday following President Trump’s talk on medical and drug prices.
$60 is proving to be a somewhat important level of support in CVS, but $65 is no joke either. Shares touched that level and backed off. If it can get some momentum over this mark, maybe it can test downtrend resistance in the low-$70s.
Count your blessings if you thought about buying CVS but sidestepped its fall from $70 to $60 last week.
Top Stock Trades for Monday #5: Walmart (WMT)
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What an agonizing trade Walmart Inc (NYSE:WMT) has become. Despite tumbling from $108 in January to $88 in one month, WMT has had a surprising lack of volatility.
Churning between $85 and $88 for about 10 weeks, shares were seemingly carving out a strong base. That thesis gave way this week though, with shares tumbling below that range.
Short-sellers can look for a test of $80 and see how WMT handles that level. Bulls though shouldn’t touch WMT unless it can get back above $85.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did held a long position in NVDA.
