U.S. equities underwent a massive rally on Monday, with the S&P 500, rallying almost 8% at one point. That said, here’s a look at a few top stock trades.
Top Stock Trades for Tomorrow No. 1: Intel (INTC)
Click to Enlarge
So many investors seem focused on Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD), that it feels like very little attention has been going to Intel (NASDAQ:INTC).
Of the three, Intel has fallen the least from its highs (although it’s only outperforming Nvidia by about 30 basis points, at down 16% vs. down 16.3%). Still, INTC deserves some attention.
Shares are moving to one-month highs, as it pushes for $60. If it can clear $60, uptrend resistance (purple line) is in play, a level that took several years for Intel to breakout over, which happened earlier this year.
Should the stock run out of gas, see if the 50-week moving can cushion a pullback. Below that puts $50 in play. Notice the near-perfect bounce off the 200-week moving average from last month. Investors would only be so lucky to nab this stock again in the low-$40s. We’ll see.
Top Stock Trades for Tomorrow No. 2: Zoom Video (ZM)
Click to Enlarge
We recently talked about Zoom Video (NASDAQ:ZM) after it failed to breakout over $160. Since then, it has struggled for upside and the company-specific news hasn’t been kind.
Shares feel considerably on Monday, but found buyers on a test of the 50-day moving average. Until it can reclaim the 20-day moving average and $125 level though, bulls lack control.
Below the 50-day moving average puts the $105 level in play. Below that and $90 is on the table, along with the 200-day moving average.
Top Stock Trades for Tomorrow No. 3: Kohl’s (KSS)
Click to Enlarge
Kohl’s (NASDAQ:KSS) has been in the “do not touch” cohort, and despite rallying almost 25% on Monday, that observation likely remains true.
Shares have been smashed here, falling from $40 to $11 in just over a month. Unlike the overall market, Kohl’s didn’t hit its low last month — it did so on Friday.
Until the stock can reclaim $17.50 and prove that it has a bit of momentum on its side, I don’t want much to do with it. A rally back to this level that fails may attract short sellers. That’s as retail is in a tough spot right now, with shoppers staying home.
On a further dip, see if the prior low holds or not.
Top Trades for Tomorrow No. 4: Apache (APA)
Click to Enlarge
Like KSS, Apache (NYSE:APA) has been in another sector under tremendous pressure: Energy. Also like KSS, Apache is getting a decent bounce on the day.
Shares hammered out a nice bottom down near the $4 mark. APA is way too volatile for me in a sector that has badly underperformed. But investors who are tempted by APA can consider a position with a low hammered out in the sub-$4 area.
On a move below $3.80 that isn’t quickly reclaimed (like in this trade), could very well usher in more downside. On a move higher, though, see if APA can reclaim $7.50. Above puts $10 in play.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, he was long NVDA.
