The market tried to stage a rebound on Wednesday, but it mostly fell flat as it was unable to gain any traction. We have more earnings due up after the close, so let’s preview some of the big ones for our top stock trades.
Top Stock Trades for Tomorrow No. 1: Meta (FB)
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Facebook (NASDAQ:FB) is set to report earnings after the close and, excluding Netflix (NASDAQ:FB), it has been the worst-looking FAANG component.
The stock has broken below the 2022 low. There’s a trend line working its way up off the prior lows, but I’m not going to stake Facebook’s luck on that mark holding. If the stock rolls over and breaks this level, it may be working its way down to the 2020 Covid lows near $137.
Regardless of its balance sheet, valuation and margins, investors have been dumping this name.
On the upside, it needs to close above $186. That will unlock the door to $200 and the declining 10-week moving average.
Top Stock Trades for Tomorrow No. 2: PayPal (PYPL)
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Talk about another hated name. PayPal (NASDAQ:PYPL) has been…man, you would have thought this stock was a complete fly-by-night growth stock with no fundamentals. It is down tremendously from the all-time high and also reports earnings tonight.
Now into its Covid-19 lows, bulls need to see this area hold for PayPal stock. If it does, look for a rebound to the prior 2022 lows in the low-$90s. Above that puts the $100 level and declining 10-week moving average in play.
On the downside, though, a break of $82 could very well put the $72 to $75 range in play.
Top Stock Trades for Tomorrow No. 3: Spotify (SPOT)
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Like most of tech, Spotify (NYSE:SPOT) is broken. The stock is breaking below long-time support around $110 and is even trading below $100.
On the downside, maybe this one finds its footing around $92, but I don’t want to put too much stock in that. It’s a falling knife, plain and simple. I would look for cleaner setups for now.
If it finds its footing around $92, perhaps we can get a low-risk reversal brewing. A “low-risk” setup comes to life if we get a clear-cut stop-loss to measure against — which we don’t have at this time.
On the upside, however, I want to see if Spotify can reclaim $100.
Top Trades for Tomorrow No. 4: iShares 20 Plus Year Treasury Bond ETF (TLT)
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The iShares 20 Plus Year Treasury Bond ETF (NASDAQ:TLT) looked like it wanted to rally earlier this week, by going weekly-up over last week’s high and clearing the 10-day moving average.
Now breaking down, though, I’m looking at this as a potential short, with sellers looking to push this one down into the $119.50 to $120 area.
A break of that likely puts the April low in play at $118.67. Below that and we could be looking at a deeper decline, potentially down toward $116.
On the upside, though, the TLT needs to regain $122 for bulls to have a shot at some upside momentum.
On the date of publication, Bret Kenwell held a long position in PYPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
