The stock markets finally caught a bid ahead of Thanksgiving, hoping to give investors some sort of comfort going into the holidays. Some will turn up for Friday’s session while others will stay offline and enjoy a four-day weekend. For those that can’t help but sneak a peek at their portfolios, here are our top stock trades to watch for Friday.
Top Stock Trades for Friday No. 1: Foot Locker (FL)
Shares of Foot Locker (NYSE:FL) are bursting higher on Wednesday, jumping 14% after the company beat on earnings, revenue and comp-store sales expectations. Time to pile in?
While the rally is impressive, particularly after Tuesday’s decline, FL is just too volatile for me.
FL stock held its uptrend for this year, but is being pressured by long-term downtrend resistance. Above this mark and the 200-week moving average and investors will have an attractive risk/reward on the long side. Otherwise, they may be able to buy on a pullback to uptrend support.
For me though, this name is simply too volatile right now.
Top Stock Trades for Friday No. 2: Deere (DE)
Is this a bullish sign or a fake-out on a low-volume trading day?
Shares of Deere (NYSE:DE) are up 3% on Wednesday despite missing on earnings and revenue estimates, and providing disappointing guidance for 2019. The stock was initially lower on the day, but has reversed higher.
There’s support in that $130 to $135 area, but the stock continues to put in a series of lower highs. That’s unattractive, as is Deere’s inability to get above its three major moving averages.
As it stagnates near current levels, my gut tells me Deere is a no-touch below $150. Above that mark and perhaps we can get a rally. But until the indices start playing ball, gains will be hard to come by. Look to see if Deere comes back down to support — and if it holds.
Top Stock Trades for Friday No. 3: GameStop (GME)
With a market cap of just $1.4 billion, GameStop (NYSE:GME) selling its almost 1,300 AT&T (NYSE:T) Wireless stores for $700 million is a big deal. It’s why the stock is up almost 14% on Wednesday. But is it enough to make GameStop stock a buy?
While the company will likely benefit from a strong holiday season, the long-term business is still not attractive to me. Neither are the charts.
Even after a rally like this, shares still can’t get above the 200-day moving average, as highlighted above. Until that’s the case, even short-term bulls should avoid this one. Maybe, just maybe, it can rally to $15. But that would setup as a great selling opportunity, at least in my view.
Top Stock Trades for Friday No. 4: Johnson & Johnson (JNJ)
One stock investors can consider buying on the dip is Johnson & Johnson (NYSE:JNJ). This name continued to churn higher and higher, until Wednesday’s 3% fall.
The drop put JNJ right down into its 50-day moving average. With a solid business, rock solid balance sheet and dividend dependability, many investors feel they can hide out in stocks like J&J.
They now have a solid risk/reward pullback in JNJ. If it closes below the 50-day moving average, investors can bail with minimal losses. If it holds, look for a rebound back to recent highs.
Top Stock Trades for Friday No. 5: Advanced Micro Devices (AMD)
The charts are not setting up well for Advanced Micro Devices (NASDAQ:AMD). The stock is struggling to get above the $22 level, as downtrend resistance (blue line) continues to pressure AMD stock lower.
There are a few main levels to watch here, starting with support. Look to see if AMD retests its 200-day moving average. If so, it will be the third touch since late-October and second time in just a few sessions. That’s not too bullish, but another test will likely draw in some short-term buyers.
Below the 200-day puts the October lows back in play and breaks the higher lows theme AMD had put together. Below the October lows and it can get ugly for AMD.
On the upside, let’s see if AMD can get above downtrend resistance. If so, it puts the $22 level and the 100-day moving average on the table.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, he is long T.
