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.
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.