The markets took it on the chin on Wednesday, with the S&P 500 down more than 2% at one point in the session. Let’s look at a few top stock trades as we enter the end of the week.
Top Stock Trades for Tomorrow #1: Alphabet
Shares are currently finding support at the 61.8% retracement at $1,175. However, a deeper pullback could take place now that GOOGL stock has broken below its multi-month uptrend.
I would look for a slightly deeper decline in GOOGL, between $1,140 and $1,150. There it has the 50% retracement, the 200-day moving average and prior support from its post-earnings pullback.
Longer term investors will likely consider a deeper pullback in GOOGL as a buying opportunity, given the solid results it had last quarter.
On a rebound, look to see if GOOGL can reclaim its 50-day moving average and prior uptrend support.
Top Stock Trades for Tomorrow #2: Exxon MobilExxon Mobil (NYSE:XOM) warned about its third-quarter profit, as the results would be below expectations. This hit shares — no surprise there — as the stock breaks below $68.
The $67 to $69 area has been critical in 2019. Below it opens XOM up to a test of downtrend support (blue line) and the December lows.
It’s worth pointing out that sub-$64 has typically been a very good buying opportunity over the last few years.
Top Stock Trades for Tomorrow #3: General MotorsGeneral Motors (NYSE:GM) is struggling to come to terms with the UAW, while its quarterly sales figures came in below expectations. Shares continue to move lower as a result.
On Wednesday, shares fell through its one-year uptrend support level (blue line), while also tumbling below the 61.8% retracement.
Look to see if GM can reclaim the 61.8%. Above it puts $36 back in play. Below the 61.8% retracement and GM may continue lower, possibly to $33 where it will find the 78.6% retracement.
Top Stock Trades for Tomorrow #4: AphriaAphria (NYSE:APHA) has been struggling lately, falling from $7.14 earlier this month to sub-$5 earlier today.
However, the stock reversed and actually closed higher despite the punishing market session. APHA is one of the better-acting cannabis stocks, but worry about sentiment as the group continues to trade really poorly.
Let’s see if it can reclaim channel support near $5.70 and get back above the 20-day moving average.
Top Stock Trades for Tomorrow #5: Russell 2000 ETF
Last week, InvestorPlace readers were warned about small caps in the Stock Market Today column.
That played out really well for those that took caution, as the iShares Russell 2000 ETF (NYSEARCA:IWM) has fallen about 7.5% in just a few weeks.
Range resistance held IWM in check, and now it’s time to see if it will test down into range support near $145. A break of range support and the August lows at $143.74 would spell trouble.
If IWM falls below those marks, a decline to $135.66 may be in store, which is the 78.6% retracement. Keep in mind, range support held even through the May decline, so below $143 is certainly a cause for concern.
If it holds, look for a bounce up to its moving average confluence.