The stock market continues to grind higher, which isn’t a surprise given that a majority of companies are beating earnings estimates. It helps when the Federal Reserve is playing to the bulls’ side rather than the bears’ side. Let’s look at some top stock trades for Tuesday.
Top Stock Trades for Tomorrow #1: Cronos Group
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What an absolute beast Cronos Group (NYSE:CRON) has been. The market initially ignored the company’s $1.8 billion investment from Altria (NYSE:MO) as it was in a fit of irrational selling. But after the Christmas Eve meltdown, investors came back to CRON.
Shares have gone from $10 to a high of $25 now. With a 90 RSI, it’s technically possible for CRON to continue higher, although a pullback could strike at any moment and it would be warranted. CRON was kind enough to give our Aurora Cannabis (NYSE:ACB) a huge breakout on Monday as well, but for those that have missed these cannabis trades, it’s best to take a pass for now.
Cronos can continue higher, technically speaking, but buyers could eat big-time losses even after a moderate cool down.
Top Stock Trades for Tomorrow #2: Netflix
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After jumping on earnings — despite a more than 50% rally ahead of its quarterly results earlier this month — Netflix (NASDAQ:NFLX) needed to pullback to digest some of this move. That pullback looks complete as share flirt with another breakout.
The immediate price action for Netflix may hinge on how Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) trades following its earnings after the close on Monday. But short of a disaster, NFLX is poised for a big move.
Not only is downtrend resistance just above current levels, but so is the three-day open/close range from its earnings move. A close above this mark could kickstart a move up to the $375 to $380 level.
Top Stock Trades for Tomorrow #3: AMD
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Speaking of tight earnings ranges, look at Advanced Micro Devices (NASDAQ:AMD). After surging almost 30% in just two days after earnings, AMD is barely giving up any of those gains.
In fact, it’s consolidating very nicely in this tight little range, something that I expect to resolve to the upside. Worth noting is that Monday’s high is about where AMD opened on Friday before falling, near $24.65. Let’s see AMD get through this level and hold it to trigger a breakout.
Top Stock Trades for Tomorrow #4: Sysco
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After beating on earnings, Sysco (NYSE:SYY) is rallying. However, it’s well off the session highs, as resistance keeps the name in check.
Is it the $67 level, downtrend resistance (purple line) or the 200-day moving average acting as resistance? Who knows. Perhaps all three. As long as SYY holds above $64 though, it’s technically okay. However, I’d love to see it retest this resistance area in the next few days. Should it eventually break through, look for a possible run into the low-$70s. If it can’t, I want to see the 50-day moving average hold as support, as well as $64.
Top Stock Trades for Tomorrow #5: Pyxus International
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Rarely talked about here is Pyxus International (NYSE:PYX). However, this name popped up on traders’ radar after its 14% rally on Monday. This name has been choppy and volatile over the past few days, although with its $135 million market cap, not many may have noticed.
For those that are trading this name despite its small size and low volume, make sure it stays above this $15 to $15.50 area if you’re long. If it gains some momentum, maybe it fills the gap back up to $22.50. If it loses $15 though, its 50-day moving average is likely next in line.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long GOOGL.
