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5 Top Stock Trades for Wednesday — How to Trade Kohl’s Earnings Rally

top stock trades - 5 Top Stock Trades for Wednesday — How to Trade Kohl’s Earnings Rally

The gains continued on Tuesday, with the S&P 500 pushing through to new highs. Helping drive that move is retail, as small bull markets in individual industries and sectors continue to push stocks higher.

Top Stock Trades for Tomorrow #1: Kohl’s

top stock trades for KSS
Source: Chart courtesy of StockCharts.com

The retailer beat on earnings and revenue expectations and provided strong guidance. Kohl’s (NYSE:KSS) also said its partnership with Amazon (NASDAQ:AMZN) is going well.

That’s giving confidence to the bulls, who are debating pushing KSS to new highs. Based on the charts, it looks like it may happen.

With uptrend support nearby as well as the 20-day and 50-day moving averages, bulls can stay long KSS. those looking to buy should wait for a dip into this support, or wait for a successful breakout over about $80.

Top Stock Trades for Tomorrow #2: Microsoft

top stock trades for MSFT
Source: Chart courtesy of StockCharts.com

Like a number of other tech giants, Microsoft (NASDAQ:MSFT) didn’t disappoint with its quarterly results back in July. Shares have had trouble rallying after the fact though, which could give investors a great buying opportunity.

Uptrend support comes into play near $104, just below the 50-day moving average. Should MSFT fall to this level and find support, bulls can get long. It’s also one of 10 A-Rated Blue Chip stocks to buy.

Top Stock Trades for Tomorrow #3: The U.S. Dollar Index

top stock trades for UUP
Source: Chart courtesy of StockCharts.com

The dollar, as viewed through the PowerShares U.S. Dollar Index (NYSEARCA:UUP), has been slowly grinding higher since May.

For those willing to bet on a slow-riser, the UUP could be the way to do it. As long as trend support holds, which is now near the 50-day, a rebound up to the $25.50 level should be in the cards.

It’s not a huge return, but sometimes dependability is worth a discount. The UUP at least offers an attractive risk/reward.

Top Stock Trades for Tomorrow #4: Johnson & Johnson

top stock trades for JNJ
Source: Chart courtesy of StockCharts.com

Support near $120 held and Johnson & Johnson (NYSE:JNJ) has been in rally-mode since. After getting to nearly $138, shares are now taking a rest.

It would be very bullish to see the $132 to $134 area hold as support. If it does, bulls will feel emboldened to take JNJ higher, likely into the $140s should it get enough rest.

Working off some of the recent momentum and holding support will give bulls the encouragement they need going into the fourth quarter.

Top Stock Trades for Tomorrow #5: Toll Brothers

top stock trades for TOL
Source: Chart courtesy of StockCharts.com

Scorching higher by 13%, Toll Brothers (NYSE:TOL) has been on fire Tuesday. The company’s better-than-expected earnings along with third-quarter guidance is giving investors reason to bid shares higher.

But it’s not just the rally to take note of, as shares are pushing through big-time resistance. Various forms of downtrend resistance have been in place since the January highs.

Now up over those downtrend levels and above the 50-day moving average, TOL stock looks much better. A run up to the 200-day moving average could be in the cards next, but there’s a fairly wide trading range for interested investors.

We need to see how the stock handles the next few days and whether a trading range develops. For really short-term thinkers, they can use Tuesday’s range as a basis.

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.

Article printed from InvestorPlace Media, https://investorplace.com/2018/08/5-top-stock-trades-for-wednesday-kss-tol-uup-msft-jnj/.

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