Thought we’d get a rubber-band bounce back up? Not the case this time. U.S. stocks bounced off their lows last week, but quickly gave up their gains for this week. Equities continue to languish as investors weigh higher rates, among other things. In light of this action, here are our top stock trades for Friday.
Top Stock Trades for Tomorrow #1: Apple
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Let’s start with the biggest of them all: Apple (NASDAQ:AAPL).
The stock still sports a market cap north of $1 trillion, a surprisingly upbeat note considering the current climate. However, if the bears get to Apple, it could have a wide-ranging impact on the market, particularly the Nasdaq.
So far, Apple has been churning between $215 and $230, but is now below the 50-day moving average. An uptrend is in play (blue line), but below that the 100-day moving average is a possibility.
A full-blown breakdown could land shares in the mid-$190s, where another uptrend (purple) and 200-day currently rest. But so far, over the 100-day and $215 level, Apple still looks okay.
Top Stock Trades for Tomorrow #2: Activision Blizzard
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After a jump on the new Call of Duty game, Activision Blizzard (NASDAQ:ATVI) has been a big-time disappointment.
So far, the top of range is holding steady as resistance, but the bottom of the channel is a little shakier. Just over $70 is a rough estimate for this mark.
Honestly, the action isn’t great, particularly given the broader market’s action lately. I would feel better about ATVI with shares over the 200-day moving average, but below $70 and it could turn ugly if the overall market remains under pressure. If you’re long, watch this mark.
Top Stock Trades for Tomorrow #3: PowerShares QQQ ETF
Used as a proxy for the Nasdaq, the PowerShares QQQ ETF (NASDAQ:QQQ) has not looked good.
With the exception of one trading day, the QQQ has held its 200-day moving average as support. However, like the S&P 500, the 100-day moving average is now acting as resistance. Below $170 and the 200-day, and the prior lows near $167.50 are on deck.
Below that and we could get an even larger correction. So pay careful attention to this level over the next few days. A retest of the lows wouldn’t be all that surprising.
Top Stock Trades for Tomorrow #4: Blackstone
Blackstone (NYSE:BX) beat on earnings and revenue expectations, but shares are down about 2.5% on the day despite the results.
That’s put Blackstone right into a very critical spot, in my view. Aggressive buyers can nibble BX stock here so long as $35 holds as support. They can use Thursday’s low as their stop.
Conservative buyers may want to wait for a breakdown to the $32 to $33 level, where BX will find the 50-week moving average and uptrend support. Don’t forget about that 6.5% yield.
Top Stock Trades for Tomorrow #5: PayPal Holdings
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PayPal (NASDAQ:PYPL) will report earnings after the close on Thursday. This company continues to do quite well, yet the stock market is not rewarding its fundamentals. That said, PYPL is a pricey name as well.
Should shares rally, see how they handle the $81 level. Not only has this area been significant in the past, but its the recent high where PayPal pulled back from earlier this week. Above that is the 200-day moving average. A rally and fail to this mark will also be a concern.
On the downside, see how the recent lows near $75 hold up. If PYPL goes right through it, see how it does in the $70 to $72 area, an area that’s been strong support for the past year.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AAPL and PYPL.
