Markets trudged higher once again on Monday, but not without some struggle. That’s as the Fed is on the calendar for this week, alongside a slew of earnings reports. With that in mind, let’s look at a few top stock trades.
Top Stock Trades for Tomorrow No. 1: Bitcoin (BTC-USD)
I have a friend who worked several decades on the trading floors in Chicago. Although referring to the S&P 500 futures, he has a saying that goes something like, “They look so bad, ya gotta buy ‘em!”
That’s the first thing that came into my head on Sunday night looking at a chart of Bitcoin (CCC:BTC-USD) over the past week.
After rallying for five-straight days, Bitcoin finally closed above its 50-day moving average coming into Monday’s session. Now ripping higher on its sixth-straight daily gain, Bitcoin is knocking on the door to $40,000.
Last week, I said Bitcoin had to hold the $28,000 to $29,000 area, but I was leery that it would. It looked like crap — it looked so bad that I guess it was a buy.
Let’s see how Bitcoin does with the June high, near $41,350. Above that could put the 200-day moving average in play. On the downside, though, let’s see that the 10-day and 50-day moving averages act as support on the eventual dip.
Top Stock Trades for Tomorrow No. 2: Microstrategy (MSTR)
Let’s take a look at a few of the Bitcoin plays on the equity side, starting with Microstrategy (NASDAQ:MSTR). This company has pushed hard into the space, accumulating a ton of Bitcoin
Here is a monthly chart for MSTR stock, showing the volatility it’s experienced this year. It also shows that the stock continues to bounce off the 10-month moving average.
Currently, we’re looking at an inside month for Microstrategy. If we get an inside-and-up — where MSTR stock takes out the July high in August, assuming the July high is below the June high — then we could see a strong rotation higher.
I personally would prefer that setup vs. a monthly-up rotation, where the July high takes out the June high in the next few days. Either way, we could be looking at a rotation that sends MSTR stock back to $800-plus.
On the downside, however, keep an eye on the mid-$400s — as well as the 10-month moving average.
Top Stock Trades for Tomorrow No. 3: Riot Blockchain (RIOT)
Riot Blockchain (NASDAQ:RIOT) is also popping up all over our scanners.
I hate to be overly simplistic, but oftentimes those are the best approaches. On the upside, keep an eye on $40. If Bitcoin prices continue higher, so too will Riot, but this level has been notable all year long.
On the downside, though, I desperately want to see the 10-day, 21-day and 50-day moving averages combine to act as support. Back below the 200-day moving average and who knows, Riot may retest the lows. It would also likely mean Bitcoin is in a bad spot, too.
Top Trades for Tomorrow No. 4: Hasbro (HAS)
All year long, Hasbro has struggled with the $100 level, which the stock is bursting through right now. I want to see $100 become support, as do all of the investors that stuck with this one.
If HAS stock loses $100, it puts the 50-week moving average in play. Below that, and $90 is on the table.
However, on the upside, let’s see if Hasbro stock can push up to $109.50, the pre-coronavirus high from 2020. Above that could open up the $120 to $121.50 area.
Top Trades for Tomorrow No. 5: General Electric (GE)
General Electric (NYSE:GE) will report earnings on Tuesday morning, with bulls hoping they get good enough news to justify bidding this one higher.
Here is a monthly chart — I like to zoom out. Notice how GE stock is holding the 10-month and 50-month moving averages. It’s also holding the $12.25 level. I want to continue seeing that after General Electric reports earnings.
Below could put $10 and the 21-month moving average in play.
On the upside, though, let’s see if shares can take out the $14.40 level. Above that could put $16.75 in play.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.