The S&P 500 wobbled in the morning, but ultimately rallied on a strong retail sales result. As it tries to push to new all-time highs, let’s look at a few top stock trades from the day.
Top Stock Trades for Tomorrow No. 1: Lucid Motors (LCID)
How fun has Lucid Motors (NASDAQ:LCID) stock been to trade lately? Shares were up almost 24% on the day after reporting earnings and while its $89 billion market capitalization would make Benjamin Graham’s head explode, this one just keeps charging higher.
After hitting a bottom in early September, shares eventually exploded through $30 resistance, consolidated its gains and pushed through $40.
Then $40 was support as LCID stock consolidated between the 50% and 61.8% retracements. On the next surge, we have shares pushing the 78.6% retracement near $54.50.
We have to be on guard for a reversal — and there is a bit of minor divergence on the Williams %R reading — but we also have to realize that the $60 to $65 area could be in play next.
Top Stock Trades for Tomorrow No. 2: Jumia (JMIA)
We’re seeing a close opposite in Jumia (NYSE:JMIA), which was down more than 19% after reporting earnings.
This stock got “meme’d” as it exploded higher at the start of the year. Unfortunately, it’s been under constant selling pressure since. Now that the $18 level has given way, shares are under even more pressure.
This is a tough one to trade, as it’s akin to “catching a falling knife.” If you’re investing in it, it may be a different story. But there’s no telling if this name will bottom here near $15 or all the way down at $12.
Or who knows, maybe it goes lower than that even.
If we get a move higher soon, let’s see if Jumia can reclaim the prior low at $16.94. That will at least put a potential bullish reversal in play.
Top Stock Trades for Tomorrow No. 3: Home Depot (HD)
Home Depot (NYSE:HD) quietly inched higher in pre-market trading, but quickly jumped higher by more than 6% to all-time highs once the stock market opened for trading.
The move pushed it into breakout mode, as it cleared the key $375 level. That opened the door to the $390 to $393 area, the latter of which is the two-times range extension.
From here, let’s look to buy the dip. Otherwise, $400-plus may be in a play. Longer-term swing traders may consider using the $420 to $422 area as their upside target.
Top Trades for Tomorrow No. 4: PLBY Group (PLBY)
PLBY Group (NASDAQ:PLBY) had itself a day, up more than 31% on robust volume.
The stock is exploding over its third-quarter high, but backing off its 50% retracement of a rather large range. I would let this one catch up to its short term moving averages (even those measured on an intraday basis).
Otherwise, a move over $41.60 opens the door to the 61.8% retracement at $46.63.
It’s worth noting that the 50% retracement level was solid support in May and stiff resistance in June. That tells us that this level is significant. To fail at it puts us in a buy-the-dip mindset. A break out over it has us looking at a stronger rotation.
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.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.