After Friday’s painful finish, stocks came roaring back on Monday. Let’s see if the bulls can continue to push equities back over some key marks. In the meantime, let’s look at a few top stock trades.
Top Stock Trades for Tomorrow No. 1: Ford (F)
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Ford (NYSE:F) shares spiked higher on Monday, ripping more than 8% at one point. However, shares are now up “just” 3% ahead of earnings later this week and on news of a six-year partnership with Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG).
In any regard, we want to see this name close over $10.84 and the 10-day moving average.
Over the latter shifts momentum back in favor of the bulls for a potentially quick pre-earnings rally. That’s after a sharp rally to a recent high of $12.15, followed by six consecutive daily declines.
Closing over $10.84 technically gives us a daily-up rotation, although it’s a little sloppy given today’s long wick.
A post-earnings dip below this week’s low could put the $9.50 area and the 50-day moving average in play. Above Monday’s high puts $12.15 in play, followed by the 161.8% extension.
Top Stock Trades for Tomorrow No. 2: United Parcel Service (UPS)
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United Parcel Service (NYSE:UPS) will report earnings on Tuesday before the open. While the stock has done well and business has been great, the stock has been struggling.
Trading into support now, the $156 level is critical. To lose it would likely put the 200-day moving average on the table. Below that and a longer-term price target of $125 could be in play — the gap fill.
On the upside, it’s a bit more complex. Or should we say, difficult?
Bulls need to see UPS reclaim the $166 level. Above puts it back above the 50-day and 100-day moving averages, as well as gives us a monthly-up rotation. That will put $175-plus back in play.
Top Stock Trades for Tomorrow No. 3: Thermo Fisher (TMO)
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Thermo Fisher (NYSE:TMO) is up about 2% on earnings, but off the highs of the day. Ordinarily, that’s no big deal. In this case, it matters though.
Over $522 had TMO giving bulls a weekly-up and a monthly-up rotation. If we get a move back above that mark, TMO may be ready to rally. In that case, the 2020 high is in play at $532.50.
Above that and a push toward $550-plus could be in the mix. Keep in mind, this stock had a big pullback and then consolidated for several months. A strong rotation higher could unleash another rally.
On the downside, we don’t want to see a move below the 10-day moving average in the short term. Below could put $500 and the 50-day back in play.
Top Trades for Tomorrow No. 4: Gogo (GOGO)
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I want to look at Gogo (NASDAQ:GOGO). We nailed the trade in Bed Bath & Beyond (NASDAQ:BBBY), a trade that was in play before the whole Reddit short squeeze thing took over.
Gogo is similar to BBBY and caught some action last week, but never really sustained its rally. Now back down in the mid-$12 area, it’s worth a look.
Keep in mind, this is a higher risk speculative play. However, because of some solid fundamental improvements, I actually like the underlying business here. In other words, this isn’t just a short-interest play that’s been all the rage. As a result, I think bulls can buy the dips.
The $11.50 to $12.50 zone had been resistance. Now we want to see it act as support. If it can, $15-plus is back in play. Ultimately we want to see $18-plus, but let’s go one step at a time.
Below $11.50 and it’s possible the stock moves lower, potentially down toward $9.50. Again, this is a spec name with a high short interest, but the latter may give it the juice it needs to squeeze higher.
On the date of publication, Bret Kenwell held a long position in GOGO.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
