Trade worries from President Trump, combined with a jobs report that beat expectations but had negative revisions to June and July left investors feeling mixed on Friday.
Major U.S. indices were slightly lower on the day, with a few notable movers. Let’s look at them as part of our top stock trades for Monday.
Top Stock Trades for Monday #1: Tesla
This one is going to require two charts, with the short-term one above and the long-term below. We’re not even going to bother with all the metrics and levels on the short-term level. If you want those, we have a relatively recent update on Tesla (NASDAQ:TSLA), here.
In the link above, we explained that if $290 failed as support, $277-ish was next. Below there and the April lows were on the table. We’re getting close, with Friday’s big fall, which is likely more attributed to the new 52-week low in the August 2025 bonds and the resignation of Tesla’s chief accounting officer rather than Elon Musk’s pot-smoking interview with Joe Rogan.
In any regard, if Tesla stock loses the $250-ish level and takes out its April lows, we have to brace for even lower prices. On the chart below, you’ll see that roughly $240 could be an area of support. Below that, and the $180 to $200 area is in the cards.
Click to Enlarge
Top Stock Trades for Monday #2: Snap
Snap (NYSE:SNAP) has been a dog over the past few months and that’s really no surprise. At the start of summer, we said Snap is one of three stocks to stay away from, the other two being General Electric (NYSE:GE) and IBM (NYSE:IBM). Of the three, IBM has done the best, climbing about 1%.
Admittedly though, I missed Snap’s rally from about $11 to more than $13 in that span. Now below $10 though, some investors might be tempted. Not me.
I’m not a perma-bear on Snap. I just don’t like the fundamentals, especially compared to Facebook (NASDAQ:FB) or Twitter (NYSE:TWTR). Its valuation is simply too unattractive. That said, shares are deeply oversold and a bounce could be in order. A rally back to $10.50 is possible, which would be a great level for bears to consider a low-risk short position.
Above that mark and shorts can cover for a small loss. Should it hold as resistance, a retest of its $9.50 lows may be in order. Bulls may want to buy on a close over $10.50.
Top Stock Trades for Monday #3: Starbucks
For full disclosure right off the top, I am long Starbucks (NASDAQ:SBUX). However, this one has been hot, hasn’t fixed all of its fundamentals problems and is nearing previous support. Granted SBUX has a big buyback in place and investors no doubt love the dividend. Still, rallying 17% from its ~$47 lows to $55 seems stretched.
Not to mention, $55 was prior support and could easily act as resistance on its first retest from the bottom-side. Further, its 200-day is nearby at $55.48 and could act as resistance.
Starbucks isn’t the short of the century by any means, but buyers might want to wait for a better setup. Short-term longs may want to think about ringing the register.
Top Stock Trades for Monday #4: Broadcom
Shares of Broadcom (NASDAQ:AVGO) are on the move, rallying about 8% after the company reported positive earnings results.
AVGO did a nice job jumping from $200 in July to its current levels near $232. I would find it very encouraging if it can hold above $230, and certainly $220. If it loses $220, I believe that would be quite bearish.
My concern would be the $240 area, where the 200-day moving average sits and serves as the backside of prior uptrend support. Even still, $250 could give AVGO trouble.
Obviously the upside for bulls is that, even if $250 is resistance, that’s almost 20 points away. The trade? Aggressive bulls can go long and use a stop on a close below $220 as their point to bail.
Top Stock Trades for Monday #5: Roku
Roku (NASDAQ:ROKU) has been on fire since it reported earnings in August.
We want to KISS — keep it simple — with the trade, though. I doubt we get a quick pullback to the $52.50 area, my preferred buy zone. So a pullback to its prior highs, near $58 would be a good start. Aggressive bulls can step into ROKU closer to $60.
Conservative bulls may want to wait for a pullback into uptrend support. Either way, this is a buy-on-dips name, not like Adobe Systems (NASDAQ:ADBE) and Salesforce (NASDAQ:CRM), two names InvestorPlace readers have made a lot of money on since we began this column. Stick to the trend, until it fails.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell was long SBUX and CRM.
