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
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
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
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
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.