U.S. Stocks were moving higher on Wednesday after earnings from Apple (NASDAQ:AAPL). However, a Fed meeting threw bulls a curveball, as investors try to digest the news without giving up recent gains. While the Fed didn’t say much to derail the rally, indices are slightly lower on the day. Let’s look at a few top stock trades going into Thursday.
Top Stock Trades for Tomorrow #1: CVS Health
Shares of CVS Health (NYSE:CVS) have consolidated wonderfully near this $52 level. On Wednesday, shares jumped 6% after it reported earnings, giving it a nice weekly gain. The move also put CVS over the 10-week moving average.
The next test for bulls comes near $58, which was the low about a year ago. If it can get through there, it has potential downtrend resistance at $60 and some room to run above that if it can clear it.
The ideal setup? A pullback this week or next week to the 10-week moving average, which holds as support. That will give investors a chance to gobble up CVS.
Top Stock Trades for Tomorrow #2: Twilio
Very impressive earnings from Twilio (NYSE:TWLO) initially sent the stock higher on Wednesday. However, the rally has proven to be too much, too fast, with shares giving up all the gains in the session.
Now we have to see where support steps up. Is it the 20-day moving average? For aggressive bulls, that means buying this pullback right here, right now. For more conservative buyers, perhaps a little lower at the 50-day is a more ideal entry.
$120 was notable short-term resistance and then short-term support, so this may be a reasonable level to get long as well. The point being, let’s scoop up TWLO on a pullback. Some may prefer to wait for “the big one,” and I would too.
But we have to be aware that it’s possible a mega pullback doesn’t develop any time soon. If it does, maybe we can get TWLO near $103. We’ll see. Otherwise, look to see if we get another move up to $135.
Top Stock Trades for Tomorrow #3: Amgen
On a rebound to this level, AMGN failed to get above it — even on earnings. Shorts can use a close over this level as their stop-loss, and shoot to take out Wednesday’s lows. Above range support and see how AMGN does with the 20-day moving average.
Top Stock Trades for Tomorrow #4: Alibaba
We’ll have to see. But those buying now may want to see if they can get BABA on a lower open on Thursday and use the prior breakout zone as their stop-loss. Otherwise, investors should move on. A pullback to the $188 level that holds as support may also be attractive to some investors.
Top Stock Trades for Tomorrow #5: Estee Lauder
Estee Lauder (NYSE:EL) has been a thing of beauty — no pun intended. The company beat on earnings estimates and raised its outlook. It led to a monster rally that has since given up all of its gains on Wednesday.
The action is disappointing, although not all that surprising. Consider just how much this stock is up — still higher by 26% — from its February rally. Aggressive bulls can be long this stock against uptrend support (blue line) and the 20-day moving average.
Below that and I’d wait for a test of the 50-day, but it’s possible EL needs some time to reset.