After a solid rally on Tuesday, markets were again under heavy pressure on Wednesday, with the S&P 500 down more than 6% at one point. That said, let’s look at a few top stock trades as we head into the final days of the week.
Top Stock Trades for Tomorrow No. 1: Boeing (BA)
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Boeing (NYSE:BA) was certainly on the radar, with shares falling more than 15% as the company plans to draw on its $13.8 billion loan. Investors are worried as travel stocks get pummeled, and Boeing is not an exception at this point.
I noted last week that the stock needs to reclaim the 200-week moving average or risks moving lower. That said, I did not expect sub-$200 this quickly. But in this market, anything is possible.
Should Boeing reclaim $200, though, see if it can climb back to $240 and possibly fill the gap back up toward $260. On the downside, however, Boeing could be open to a fall down to the $175 to $180 range.
Top Stock Trades for Tomorrow No. 2: Lyft (LYFT)
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As we mentioned with BA, travel stocks are under significant pressure and that includes Lyft (NASDAQ:LYFT). Shares were hit hard in February, but once they broke $35 this month, it’s been a volatile plunge.
Buying now is akin to catching a falling knife. So while some investors may see value here — and maybe they’re right — traders do not yet have a bottom in place. Without a low mark to utilize, there’s no way to measure our downside, as we cannot pick a stop-loss point.
However, the exception would be a percentage-based stop-loss. But in this kind of market, that can be dangerous.
Overall, there’s no telling if $27.50 will be the low or if it will be $20. So from here, let’s see if Lyft can establish a tradable bottom and rebound back over $30.
Top Stock Trades for Tomorrow No. 3: Twitter (TWTR)
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Twitter (NYSE:TWTR) stock has been a total mess. Knifing below $32 now, let’s see if the stock can firm up around $29.
That was the fourth-quarter low, as buyers kept shares in line around that mark. If it breaks, however, it opens up a further decline toward the mid-$20s. Really though, this one has been all over the map.
Just a few days ago, it was near $35. Now around $30, TWTR is below all of its major moving averages, as well as uptrend support (blue line). For a larger rebound, I would like to see Twitter above $32 and the 100-day moving average — but let’s see how it handles $29 should it fall that far.
Top Stock Trades for Tomorrow No. 4: Royal Caribbean (RCL)
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Ending the day down more than 14% on Wednesday, Royal Caribbean (NYSE:RCL) got crushed. However, the stock has not taken out this week’s low at $40.20. That’s a noteworthy development, in my opinion.
The stock is down almost 70% from its highs, and it’s clear no one wants to own a cruise ship operator at the moment. Those who dare to buy must keep an eye on the low, though.
While RCL seems oversold, it felt that way at $60 too. You just can’t be sure. So if it loses the low and drops below $40, more downside could be on the way. If the low holds, though, see if RCL can reclaim $50 on a rebound.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, he did not hold a position in any of the aforementioned securities.
