Guys and gals, please be careful out there. When the volatility ratchets up like this, it can be a very difficult trading environment. Risk is of the utmost importance. We should be focused on preserving capital first and on profits second. With all of this in mind, let’s look at some top stock trades now.
Top Stock Trades for Tomorrow No. 1: Arkk Innovation Fund (ARKK)
The Arkk Innovation Fund (NYSEARCA:ARKK) has been a disaster so far this year. Now working on its seventh straight monthly decline, the bulls have been badly beaten up.
A good trading friend of mine has been pointing out the $40 to $50 area as a potential support zone for months now. Specifically, he has been looking at the support side of that zone and we’re just about there now.
Will ARKK find its footing? If it does and we can begin to push higher, $50 is on the table. That’s followed by the 50-day and 10-week moving averages in the mid-$50s.
If $40 doesn’t hold as support, then look at $35. That area was significant support in the past — including in Q4 2018 and during the Covid selloff in March 2020.
Top Stock Trades for Tomorrow No. 2: AMC Entertainment (AMC)
Next up is AMC Entertainment (NYSE:AMC), which reports earnings after the close. Surprisingly, the stock was able to pull off a massive squeeze in late March, which allowed AMC stock to more than double.
Since then though, shares have fallen back to the key $12.50 zone.
Shares have been finding support in this zone all year. It was also a major breakout zone in 2021. Basically, we just want to see if holds again.
If it doesn’t, sub-$10 seems to be on the menu. If it does hold and AMC stock trades higher, I would love to see it reclaim the 200-day moving average. On the upside, $20 is a key area. Above that could unlock some serious room higher, but it doesn’t seem likely.
Top Stock Trades for Tomorrow No. 3: Palantir (PLTR)
Palantir (NYSE:PLTR) is getting demolished after reporting earnings, down about 21% on the day and hitting all-time lows.
Keep in mind, this has been the story for growth stocks for a while now. They have been getting demolished as rising rates and bearish momentum have ravaged these holdings.
On the downside, let’s keep an eye on the $6.50 to $6.75 area. That’s where the 161.8% downside extension comes into play.
On the upside, however, watch $9. This was the prior support zone in the opening days when Palantir first began publicly trading.
Top Trades for Tomorrow No. 4: Upstart Holdings (UPST)
Upstart (NASDAQ:UPST) has tried rallying so many times but has been hammered each time. Like AMC, it will report tonight.
If we get a bearish post-earnings reaction, the 2022 lows are in play near $71. Below that and the gap-fill near $62 really sticks out. Lastly, the $39 to $42 area could be a potential landing zone for what’s likely to be a volatile holding in the short term.
On the upside, though, the $100 level and declining 50-day moving average are key. Above that is the $116 to $117 zone. Above that opens the door all the way up to $150.
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.