It was a robust day for bulls, as the S&P 500 quickly climbed 1.5% on the day, holding most of those gains through the afternoon as well. Now that both longs and shorts have gotten their fix over the past few weeks, let’s look at a few top stock trades.
Top Stock Trades for Tomorrow No. 1: Uber
Shares of Uber (NYSE:UBER) are rallying Thursday, up more than 7.5% as investors get bullish ahead of its earnings release after the close. Helping boost that sentiment is the strong report that Lyft (NASDAQ:LYFT) just issued.
For Uber to continue its recent run, shares need to reclaim the 50-day moving average. Although it hasn’t been in place long, it was decent support until Uber stock took a spill at the end of July.
If it can reclaim this mark and get back above prior uptrend support (blue line), it puts a breakout over its $45 IPO price back on the table. If shares can’t reclaim the 50-day or fall on the earnings results, we need to see that $38.50 holds as downside support.
Advanced Micro Devices (AMD)
What a robust day it was for Advanced Micro Devices (NASDAQ:AMD). Now, I can’t be the only guy who’s kicking himself for not buying the dip in AMD down to the 61.8% retracement near $27-and-change, right?
Up almost 20% at one point Thursday, shares were back up over $34 for a bit. Bulls need to see a move over $34.30 and a push to $35. That could really kickstart a further move higher in AMD from here.
On a pullback, see that prior uptrend support (blue line) holds as support. Below it, the 20-day and 50-day moving averages need to buoy AMD.
Cronos Group (CRON)
Things were looking good for Cronos Group (NASDAQ:CRON) stock Thursday morning. Shares were rallying after better-than-expected earnings and breaking out over key moving averages and downtrend resistance.
With today’s gap-and-crap action though, CRON is back below all of these key figures. Below $14 puts the July lows of $12.70 on the table. If that level gives way, the charts can really get ugly.
On the long side, bulls need to see CRON reclaim and hold its 200-day and 50-day moving averages, as well as downtrend resistance (blue line).
Kraft Heinz (KHC)
Management’s incompetence can’t hide at Kraft Heinz (NYSE:KHC), which hit a record low in Thursday’s session. Man, Warren Buffett — who owns more than a 26% stake via Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) — has to be fuming.
The silver lining? Despite falling to new lows, the stock is rallying nicely from those session lows.
KHC broke below its May lows around $27 and reclaimed them on Thursday. For strong-stomached bulls who are buying Kraft, they can used a close below $27 as their stop-loss. More aggressive traders can use a stop-loss below Thursday’s low.
On the upside, let’s see if KHC can get back up to Wednesday’s low near $29.50. If it can, perhaps it can fill the gap up toward $30.50.
Amid the decline, Microsoft (NASDAQ:MSFT) spent just one day below its 50-day moving average. Uptrend support (blue line) held strong and now the stock is quickly rebounding.
Look for shares to retest the highs near $142 should it maintain momentum. Otherwise, it’s business as usual for longs, as they should look to buy MSFT on the dips.