The markets were resilient through the first few hours of trading on Thursday. Investors brushed off the volatility from the prior session and stocks were posting strong gains on the day. Then, President Trump opted to tweet about raising tariffs, sending algos and investors into a fit of selling. Let’s look at a few top stock trades for the day.
Top Stock Trades for Tomorrow #1: General Motors
Shares of General Motors (NYSE:GM) hit new 52-week highs on Thursday, before giving up its gains on tariff concerns.
If GM can maintain this steep, short-term uptrend support level (purple line), then bulls may see a test of long-time resistance near $43 in the not-too-distant future.
If uptrend support gives way, see if the 10-week moving average currently at $38.82 holds up. Below that and the 38.2% retracement near $37.30 and the 50-week moving average at $36.11 are on the table.
Top Stock Trades for Tomorrow #2: Advanced Micro Devices
It was a great day for chip stocks, then it was a horrible day. A solid earnings report from the company below, plus commentary from its management that the memory market has hit a “trough” sparked a rally in the semiconductor space. Coupled with a robust bounce in tech stocks, Advanced Micro Devices (NASDAQ:AMD) was trading pretty well.
You can see in Thursday’s candle, AMD briefly reclaimed its 50-day moving average. That set the stage for a rally back to the 20-day moving average at $32.50 and gave the stock a chance to repair some of Wednesday’s post-earnings technical damage that was exacerbated by the Fed.
Now below Wednesday’s low, the prior breakout level near $29 is on the table. If that fails to hold, the 38.2% retracement at $27.67 is on the table.
Top Stock Trades for Tomorrow #3: Western Digital
Western Digital (NASDAQ:WDC) was up more than 6% at one point on Thursday, even though the company missed on earnings and revenue expectations. However, positive commentary about the future inspired buyers to step up.
They’re paying the price now. Should the stock lose short-term channel support (purple line) and the 20-day moving average near $53, a larger pullback could ensue.
Semis are getting whacked on this tariff news, so it’s possible WDC and others come under further pressure. If Fibonacci support can’t buoy Western Digital at $52.13 or $47.81, perhaps the 50-day moving and 200-day moving average can, with both currently near $45.50.
Top Stock Trades for Tomorrow #4: Qualcomm
Another name hurting on Thursday is Qualcomm (NASDAQ:QCOM), which also reported earnings. So far though, the stock hasn’t taken out its opening lows, which are up near $68.25. If it does, look for a washout down to $65.
If there’s a rebound in tech and specifically, the semi space, there will be better plays than QCOM. In fact, on a prolonged pullback, there will also likely be better candidates than QCOM.
But at $64 to $65, Qualcomm presents a solid risk/reward, with the rising 50-day just below.
Top Stock Trades for Tomorrow #5: Alibaba
Alibaba (NYSE:BABA) was hammered on Thursday, falling more than 5%. The stock may attract some buyers, but I would be leery. At least until the dust settles.
Let’s see how this one ends the week. So far, it’s holding its 50% retracement at $162.75. If it can reclaim its 50-day and 200-day moving averages, bulls are still okay, technically speaking.
Below $162.75 and the 61.8% retracement near $155 is on the table. Below that and the $148 to $150 area is possible. Over the 50-day could send BABA stock back to the 20-day, currently at $172.61 and into the upper-$170s if it clears that.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities.
