It was another mixed day for the market Thursday. Stocks rattled around for most of the day, as investors positioned themselves around U.S.-China trade war headlines.
At the same time, what we’re seeing in today’s stock market are some of the most massive, portfolio-shaking moves the bull market has experienced. Let’s get a look at some top stock trades to smartly position in as we head into the last trading day before the weekend.
Top Stock Trades for Tomorrow #1: Etsy (ETSY)
Click to Enlarge
For now, the prior February highs near $60 are buoying the name, as is channel support. Let’s give Etsy a few more days to shake out. If the lows hold — bulls can use this level to shoot against — a rebound to $65 could be in the cards. Below $60, and a drop to $56 may happen.
Stamps.com (STMP)
Click to Enlarge
Goodness. This is why we avoided the name and why we must reiterate we leave it alone again.
Fundamental investors may pick over the stock, but I don’t have an edge in it. There are better setups for my style out there and a gamble on STMP doesn’t fit.
Why’s it on the list? To emphasize caution and know that it can always gets worse.
The Trade Desk (TTD)
Click to Enlarge
Despite beating on earnings and revenue estimates and raising its outlook, shares were hammered by almost 20% at its lows on Thursday. The stock — not surprisingly — bounced off the $180 level, which held twice in March.
The drop thrust TTD below both the 20-day and 50-day moving averages, although shares have recovered nicely off the lows. It’s simply a case of running too far, too fast and unwinding some of those gains. I want to see $180 hold and will keep my initial position at this level.
If it rebounds further, see how it handles $205. There it will run into the backside of the 50-day moving average and prior short-term uptrend support.
Should $180 give way, $160 is prior resistance that could act as support. A gap fill gets it down $150, while the 200-day moving average is at $149 and trending higher.
Electronic Arts (EA)
Click to Enlarge
It’s not doing horribly on Thursday, but it’s certainly not outperforming. Channel resistance is squeezing EA stock lower and support in this $90 to $92 area is being threatened. It also has channel support just below this level.
If it cracks, see how $85 goes. Below that, $75 is in the cards.
Invitae
Click to Enlarge
NVTA was up about 5% at one point Thursday, after taking out Wednesday’s lows and reclaiming them in today’s session.
Over $21 gets us back to prior range support near $22.50. $18 was a prior high from September and this area acted as support back in March.
If it fails, NVTA can fill the gap down near $16.50. Just below, is the 200-day moving average. If you really like this name for the long term, consider this recent pullback an opportunity to nibble.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long NVTA and TTD.
