We had a plethora of Federal Reserve speakers on the microphone today and you can see it with the session’s erratic price action. As we push through the week, the S&P 500 is working on its fourth straight daily decline, although it’s down just 1% from its all-time high last week. Let’s look at a few top stock trades.
Top Stock Trades for Tomorrow No. 1: GameStop
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For what is normally a quiet week, having GameStop (NYSE:GME) report earnings seems rather disruptive. Shares gapped lower and faded on the day, but caught a monster bid after testing the 50-day moving average.
That’s about where shares opened and the stock quickly reclaimed the 21-day moving average. Now GameStop is contending with the 10-day moving average and the $200 level, with today’s high weighing in at $202.
Bulls will need to see GME stock push through this high and clear $200, putting $225 resistance on the table. Over $231 and the $250 to $270 area is possible.
On the downside, it’s pretty simple: The stock must hold the 50-day moving average and Thursday’s low. A break puts the $145 to $160 area in play, along with the 200-day moving average.
Top Stock Trades for Tomorrow No. 2: Facebook
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Facebook (NASDAQ:FB) is fresh off a run to new highs and has been consolidating in a very tight range.
It looks like we’re about to get back-to-back inside days, as the 10-day moving average continues to guide this one higher. A break of today’s low and the 10-day moving average puts FB back below the former all-time high.
While it may need to come alongside a dip in the overall market, this could put the 21-day moving average in play.
However, if FB continues to hold $377.50 and the 10-day, it’s pretty hard for me to get bearish. Instead, a move over $380 puts the all-time high in play at $384.33. Above that opens the door to the $396 to 401 area.
Top Stock Trades for Tomorrow No. 3: TLT ETF
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The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT), known better as the “TLT,” looks to be eying a potential breakout.
Shares were channel-bound for the longest time. In February, the TLT broke down out of the channel, then in June, made a strong push back into the channel. The channel still played a role, but eventually the TLT broke out in July.
Fast forward to today and the TLT is in a tightening wedge pattern, consolidating above its major daily moving averages. I would love to see it clear and close above $150, eventually putting the July high in play near $152.70.
If wedge resistance holds strong, see if the TLT holds its 50-day. A break below it puts the September low on the table, along with the 200-day moving average. A break of those two marks puts the key $145 mark to the test.
Top Trades for Tomorrow No. 4: Starbucks
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Starbucks (NASDAQ:SBUX) looked better at yesterday’s close than on today’s close. Still, the stock is technically rotating higher, clearing last week’s high.
If Starbucks can clear $120, it opens the door to the $123.50 to $125 zone. Above that and the high is on the table, near $126. Starbucks tried for three straight days to clear this level but failed to do so.
Short-term traders may consider exiting SBUX if it can’t hold the 50-day moving average. A break of this week’s low and the stock may head even lower.
On the date of publication, Bret Kenwell held a long position in SBUX. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
