The market has been hot lately, so Monday’s chill session shouldn’t be a surprise. In fact, bulls may even consider this sleepy session a victory given that the market continues to hold onto its gains relatively well. Let’s look at a few must-see stock trades.
Must-See Stock Trades #1: New Age Beverages
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An expanding partnership with Walmart (NYSE:WMT) has New Age Beverages (NASDAQ:NBEV) racing higher Monday, up more than 32%.
Shares are running into and pulling back from its 38.2% retracement for the 52-week range. It would be encouraging to see it now hold the 50-day moving average and retry this level. Whether that second attempt comes tomorrow or next week, a move to $7.50 could eventually be in the cards should it give way.
Despite the big move, shares are not yet technically overbought. If we get a slight pullback Tuesday morning that quickly goes green, that could pave the way to a quick bullish day trade. If NBEV holds up through the session, it may turn into a long swing trade.
Must-See Stock Trades #2: Bank of America
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This one was looking wonderful as it broke out over $29.50, but then quickly unwound those gains by falling 10% in just a few days. We’ve had our eye on Bank of America (NYSE:BAC) and now that it’s back in its range, it’s worth looking at again.
Shares are pulling back off range resistance, but could again trigger a breakout over $29.50. Investors may be a little gun shy this time around on a breakout given what happened last time. As such, they may rather buy a pullback into the $28 to $28.50 level. Below $28 and BAC is a no-touch.
Must-See Stock Trades #3: Russell 2000 ETF
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The Russell 2000 ETF (NYSEARCA:IWM) is not exactly leading to the upside vs. its other index peers. However, it’s looking much better than it was a few weeks ago.
In late-March, the 50-day moving average was giving way as support and the 200-day moving average was holding as resistance. Channel support was keeping the name in check and a larger correction was in question.
However, the ETF has powered through channel resistance and the 200-day moving average has given way. We now need to see this $157.50 to $158.50 area give way to really let the IWM gallup higher.
I love that the index isn’t overbought and many names are still well below their highs going into earnings. We’re seeing a rotation out of high octane growth names, but other areas are picking up the slack. Seeing the IWM pullback/consolidate a bit more ahead of earnings would be potentially bullish as well. Watch the $153 area as a key support level should the IWM correct.
Must-See Stock Trades #4: The Trade Desk
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So what growth names are taking a rest? The Trade Desk (NASDAQ:TTD) is certainly one, while investors can lump Roku (NASDAQ:ROKU) and Twilio (NYSE:TWLO) on the list as well.
For TTD, a pullback to $180 could be bought as a solid risk/reward setup. Should it get there, the 50-day moving average, uptrend support and prior support should all play a role. Below opens the door to $160.
It’s a bit concerning that the stock put in a lower high, but after such a massive run, it was bound to happen at some point. It doesn’t change the fact that TTD is one of the market’s strongest growth names.
Must-See Stock Trades #5: General Electric
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A downgrade from key analyst Stephen Tusa of JPMorgan has shares of General Electric (NYSE:GE) reeling, down 6% on the day.
Below $9.50 and GE looks destined for sub-$9. Earnings should be due up later this month, causing some investors to consider locking in short-term gains ahead of the quarter. That said, it’s an interesting dynamic as some shorts may want to cover given what new CEO Larry Culp has been able to say to impress investors over the past few months.
If the 61.8% retracement can’t support GE, $7.50 could eventually be on the table.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long ROKU.
