One day trade-war rhetoric won’t dominate the headlines, but as we head into Q3, that’s not the case yet. In lieu of those talks though, there were plenty of big movers on Thursday. Let’s look at a few of them as part of top stock trades.
Top Stock Trades for Tomorrow #1: Amazon (AMZN)
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The biggest news of the day was Amazon.com, Inc. (NASDAQ:AMZN) acquiring PillPack, a full-service pharmaceutical company that sorts patient’s medication by dose and delivers it to their door.
Sounds like a perfect fit, right?
That’s exactly why shares of AMZN jumped 2.5% on the day while traditional pharmaceutical retailers were hammered, (more on them in a minute).
We took a look at Amazon earlier this week and our first level of support held up great near $1,600. Now churning between $1,650 and $1,700 it will be interesting to see if AMZN can rally to its previous highs. If it can, it could be a good sign for FANG, and the rest of tech too, if AMZN can regain some upside momentum. If it break over $1,750, some short-term buyers may want to hop on.
Top Stock Trades for Tomorrow #2: Walgreens (WBA)
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On the flip side, we have Walgreens Boots Alliance Inc (NASDAQ:WBA) down 9.5% on the day. Despite the good earnings results and big buyback, investors don’t want anything to do with WBA on Thursday.
It’s making the $70 to $72.50 area look like strong resistance, while what was decent support between $62.50 and $65 has all be disappeared.
So what now? I hate to say it, but WBA is a no-touch for me. Shorts can use the $62.50 area as their stop and look to run it down toward $55. That would give shares a 3.2% dividend yield and support should come into play as well.
Top Stock Trades for Tomorrow #3: CVS Health (CVS)
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CVS Health Corp (NYSE:CVS) has spent its morning rallying off the lows, but is still down about 6.5% on the Amazon news.
Whiles CVS could be putting in a series of higher lows, CVS has a chart I don’t want to trust.
Long-term support comes into play at $60, which is decently far from current prices. There’s also a tough-looking downtrend resistance level in play. From the bulls’ side, I’d be more interested at $62.50, and even more so at $60 for a better risk/reward. Both CVS and WBA are a no-touch for me right now.
Top Stock Trades for Tomorrow #4: Chipotle (CMG)
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Don’t say we didn’t warn you. Even though the 6.5% fall in Chipotle Mexican Grill, Inc. (NYSE:CMG) wasn’t expected, the resistance between $475 and $500 was clear as day.
After its big post-earnings run, CMG consolidated between $415 and $430 for quite some it. It would be bullish to see the stock hold this level. The must-hold level sits down below $400, near $375.
That’s the backside of its previous downtrend resistance line. Back below that mark and CMG is in trouble.
Top Stock Trades for Tomorrow #5: Wynn Resorts (WYNN)
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Wynn Resorts, Limited (NYSE:WYNN) has been under pressure lately. Earlier this month, trend-line support failed and quickly turned into resistance. All three major moving averages gave way as well.
For bulls who want a solid risk/reward though, consider buying Wynn on a retest of $160, or close to it. Should it fail, we can bail with minimal losses. If it holds, investors can profit from a solid bounce.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities.
