It was a relatively calm day on Wall Street on Monday, with the exception of the selloff in high-growth stocks. We’ll look at a few right now, as they are our top stock trades to watch.
Top Stock Trades for Tomorrow #1: The Trade Desk
Many of these stocks are great companies, but they have been on tremendous runs so far in 2019. The Trade Desk (NASDAQ:TTD) is one of them. However, shares fell more than 10% on Monday alone — with no news in sight.
When the market was breaking out of its month-long trading range last week, many of the relative growth leaders were not partaking in said upside. We flagged that at the time — both here on InvestorPlace and on Twitter. Monday’s price action doesn’t come as much of a surprise to those that saw those posts.
In any regard, investors are trying to balance buying these for the long haul and avoid getting run over on the decline. For TTD, shares knifed right through the 38.2% retracement like it wasn’t even there.
I have my eye on $200 now. Not only is that a significant round number that can act as a magnet, but near it we will also find the 200-day moving average and the 50% retracement. If it fails to hold, $180 is the next target.
Top Stock Trades for Tomorrow #2: Netflix
After this one was smoked on earnings, InvestorPlace readers cleaned up nicely when Netflix (NASDAQ:NFLX) was rejected from prior range support at $340 and the 200-day moving average.
Now this name has been trapped in a series of relentless selling. Shares are pushing above downtrend resistance, but not in a meaningful manner as the 20-day moving average swiftly rejects NFLX.
If the 61.8% retracement holds as support, perhaps NFLX can again attempt to push above the 20-day. Above that and the 50% retracement is on the table.
If the 61.8% fails as support though, NFLX will likely retest its lows near $282.79.
Top Stock Trades for Tomorrow #3: Twilio
Twilio (NYSE:TWLO) stock didn’t even slow down as it knifed through the 200-day moving and 38.2% retracement. Like TTD, TWLO is a great company but the writing was on the wall in terms of the price action.
I’m not sure if we’ll get TWLO down to $100, but it might be an attractive entry point for interested bulls. Particularly with the 50% retracement near $105 and the 61.8% near $95.
Top Stock Trades for Tomorrow #4: Alteryx
Alteryx (NYSE:AYX) has been a monster so far in 2019. Even after Monday’s 15% beating, shares are still up 102% so far for the year. Lucky for us, we named AYX one of 7 mid-cap studs to watch this year.
With AYX slicing through the 50-day like a hot knife through butter though, investors need to take some precaution. Between $107 and $110 is channel support (blue line) and the 38.2% retracement.
If that doesn’t hold, let’s see if $95 is on the table.
Top Stock Trades for Tomorrow #5: Tanger Factory Outlets
One name that hasn’t been doing all that well this year is Tanger Factory Outlet Centers (NYSE:SKT). This REIT has a big dividend and terribly performing stock. However, shares are quietly up eight days in a row and putting an exclamation point on Monday’s rally.
Shares are up about 5% and bursting through the 50-day moving average. Keep in mind, this moving average gave SKT a very hard time in July. Now above it, let’s see if shares can get back to $16.50.
Mainly though, I want to see the 20-day and 50-day moving averages act as support going forward.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long SKT and TTD.
