The S&P 500 notched another new all-time high as earnings continue to roll in. Honestly, the broader market is getting a bit extended, particularly as we approach the two-day Fed meeting and the monthly labor report, so keep that in the back of your mind. We’re not looking for anything too extreme, but just taking it all in as we look at a few top stock trades.
Top Stock Trades for Tomorrow No. 1: Nvidia (NVDA)
Tesla (NASDAQ:TSLA) is the gift that keeps on giving? How about Nvidia (NASDAQ:NVDA) too?
This stock continues to power higher and is now hitting our second price target today. If we can squeeze out a bit more upside in this name, we may see the $280 to $287 zone, although that may feel greedy to some.
However, we let the price guide us — nothing else.
On the downside, losing the 161.8% extension may put the 10-day moving average in play. Should that setup pan out, let’s look to buy the dip in this one.
Top Stock Trades for Tomorrow No. 2: Chegg (CHGG)
Chegg (NYSE:CHGG) stock got annihilated on the day, down almost 50%. What in the world?
For many, this big of a fall is too much of a risk to get long, and that’s just fine. Let’s look at what the technicals were saying before today’s fade as a learning lesson.
Before Tuesday, Chegg stock had fallen in eight-straight weeks. While that seems like an oversold situation, notice the pattern it broke down from in the early part of the correction.
Shares were forming a wedge pattern (blue lines), bouncing off support and closing near flat in mid-September. However, that support level was lost in the following week, which should have stopped out most bulls.
In the event they didn’t stop out, the gap below the two-week low and rejection from the two-week low should have gotten them out of the position.
Now in the low-$30s, some may consider CHGG stock if it dips a bit further into the value zone (purple box), gaps below Tuesday’s low but reclaims its (a reversal) or reclaims prior downtrend resistance (blue line).
Reminder: There’s no shame in taking a pass on this stock.
Top Stock Trades for Tomorrow No. 3: Zillow (Z)
Zillow (NASDAQ:Z) had recently broken out over downtrend resistance (blue line), but it couldn’t reclaim the 21-week moving average. Now it’s heading right back down.
Despite Tuesday’s hefty tumble, Z stock is finding support near $85. A bounce back over $90 could put $100-plus back on the table.
However, on a break of $85, we could see the $65 to $68 area next, where Z stock finds the 200-week moving average and the prior breakout level.
Top Trades for Tomorrow No. 4: Blackstone (BX)
Blackstone’s (NYSE:BX) price action is incredibly impressive. I have been stalking this one for the better part of a week, looking for the stock to reset after a monstrous run.
It did, bouncing from the 10-day moving average on Monday. On Tuesday, the stock went daily-up and is now running into last month’s high.
A push over $143.03 gives us a weekly-up and monthly-up rotation, potentially putting the $150 to $154 area in play.
On the downside, though, a break of this week’s low does not bode well for bulls.
On the date of publication, Bret Kenwell held a long position in NVDA. 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.