It’s been a volatile trading week for U.S. stocks, as equities rebound with a vengeance on Thursday. What will that mean for Friday? Who knows. But we do have five great top stock trades to get to, so let’s go.
Top Stock Trades for Tomorrow #1: Nvidia
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On Thursday after the close, Nvidia (NASDAQ:NVDA) will report its second-quarter results. (Here’s a solid preview).
We’ve gotten pretty used to Nvidia gobbling up massive gains over the past few years, but shares have been surprisingly sluggish so far in 2018.
Bulls should feel pretty comfortable though, as NVDA has been trading well on multiple timeframes. Uptrend support is down near $250, while the low-$250s have been buoying the name as late too. $240 has been support, while the 100-day moving average is hovering near $245.
Even the 200-day moving average is all the way down at $233 and wouldn’t be a bad buying opportunity provided that it holds as support. Since investors didn’t rally Nvidia into the print, it has the potential to pop on good results and commentary. Should it do so, the first level to watch is its prior highs near $270. After that, the $280-ish area would be the top of its recent channel.
Those are your upside and downside levels to watch after the print.
Top Stock Trades for Tomorrow #2: Walmart
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We previewed the earnings from Walmart (NYSE:WMT) the other day and the move was pretty spot-on. Shares rallied right into the prior gap near $100. InvestorPlace readers were lucky enough to be all over the move.
So what now? If shares can close above Thursday’s highs, then the $108 high is in target. Other than that, we may need a few days to see what Walmart’s range will be so we can define our risk. For now, aggressive bulls can use $97.91.
Top Stock Trades for Tomorrow #3: J.C. Penney
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J.C. Penney (NYSE:JCP) is another name we took a look at this week ahead of the print. No offense to the bulls, but this is just not a name I wanted to touch and after Thursday’s fall I still don’t want to. Not when I could buy a name like Home Depot (NYSE:HD) after its disappointing pullback despite good quarterly results.
With the bottom completely out and not much reward left for shorts, there’s no reason to touch this stock right now.
Bonus from IP’s Luke Lango: JCPenney vs. Sears: Which Retailer Will Head Out the Door First?
Top Stock Trades for Tomorrow #4: Teva
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Some good news from the FDA sprung Teva Pharmaceutical (NYSE:TEVA) higher by roughly 7% Thursday.
The move puts shares above all three major moving averages. Its recent highs near $25 are back on the table, as are its channel highs just over $26. Should it push through and continue higher over the longer term, look for a gap fill near $30.
With uptrend and moving average support below, bulls should feel confident riding this name. That narrative changes if Thursday’s gains are lost, along with uptrend support.
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I’m not trying to be a horn-tooter today, but the charts are lining up great from our recent discussions. In this case, we have JD.com (NASDAQ:JD), a name we just looked at earlier this week.
Not only did critical trend support give way earlier this week ahead of the report, but it retested that mark and failed miserably on Thursday after its before-the-bell earnings report. I can’t stress enough how poor of price action this is for the bulls.
The other day we said a possible test of $30 was in the cards, even though that was still 10% lower even after a big fall had taken place. Given its $31.18 low on Thursday though, $30 is looking possible. If it gets there, bulls can give it a shot. Otherwise, wait for JD to get back over its previous support level.
A bid of farewell — R.I.P. to the R-E-S-P-E-C-T legend Aretha Franklin.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell was long NVDA.
