A strong CPI reading spooked investors as they continue to worry about inflation. Let’s look at a few top stock trades as equities took a hit on Wednesday.
Top Stock Trades for Tomorrow No. 1: Upstart Holdings (UPST)
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Upstart Holdings (NASDAQ:UPST) saw a massive rally to start the day, but then gave up a bulk of those gains. The stock made its public debut in December and has been quite impressive since. However, it’s also been quite volatile.
After rallying almost 30% at one point in the day, shares are barely up on Wednesday, higher by 2.7%.
We now have some levels to watch. Back above $103 puts UPST stock above the 50-day, 21-day and 10-week moving averages. That could put the post-earnings high in play near $115.50.
Above that, and $120 could be on the table.
On the downside, though, a break of this week’s low at $81.25 is highly discouraging. That’s even more true should it close below this mark. That increases the odds that we get a gap-fill down to $62.16.
Top Stock Trades for Tomorrow No. 2: Opendoor Technologies (OPEN)
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This morning I talked about looking for a bottom in growth stocks. In doing so, we need to see this week’s low hold. That’s something that Opendoor Technologies (NASDAQ:OPEN) is really struggling to do.
Flirting with this level now leaves OPEN in a risky spot. Opendoor bulls will likely want to wait for this one to reclaim last month’s low before proceeding on the long side. In that case, one might target the 21-day moving average as their first upside target.
On the downside, a loss of the $15 level could put the $12.50 to $13.40 area in play.
Top Stock Trades for Tomorrow No. 3: Yeti (YETI)
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Yeti (NYSE:YETI) will report earnings on Thursday and the stock has been strong. While correcting now, the 10-week moving average is coming in as support.
In a non-earnings scenario, this would be an attractive setup. For those that don’t mind earnings, I suppose it still is. I like to see the post-earnings reaction though.
In this case, an open in the $76 to $79 range would be attractive. There are various moving averages and prior breakout levels in this area that should buoy the stock. That could give us a buy-the-dip opportunity.
On the upside, however, let’s see if Yeti can clear $90 resistance. If it can, $100 could be up next.
Top Trades for Tomorrow No. 4: Alibaba (BABA)
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Alibaba (NYSE:BABA) will also report earnings on Thursday and the stock has not looked well for awhile now. Now below the 21-month moving average, shares nearly retested the December low.
On a bearish post-earnings reaction, let’s see how the stock handles the $211 area. Below could put $200 and the 200-day moving average in play.
On the upside, though, I would love to see a close over the 21-week and 10-month moving averages. That would require a big move — nearly 10% — to get the stock back above $240.
However, if it can, it could clear the way for a larger rally to the upside. Unfortunately though, Alibaba may need other tech stocks to be trading better too. So far, that’s been a tough ask.
Top Trades for Tomorrow No. 5: AMC Entertainment (AMC)
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AMC Entertainment (NYSE:AMC) remains in focus amid Reddit traders and the reopening trade. Currently, the stock is going weekly-up over last week’s high at $10.12, but is struggling with the 50-day moving average.
If it can clear Wednesday’s high, it puts downtrend resistance in play, then last month’s highs at $12.22. Above $12.50, and perhaps we can see a move back toward $14.
On the downside, however, a loss of the 21-day moving average is concerning, but as long as AMC holds up over uptrend support, the stock is likely okay. Below that mark puts this month’s and last month’s lows in play.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in any of the securities mentioned in this article.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
