Tuesday’s pause was just a momentary delay before Wednesday’s beating. And on Thursday, investors will turn to Big Tech to see if that group can save the day. That said, let’s look at some top stock trades in the meantime.
Top Stock Trades for Tomorrow No. 1: General Electric (GE)
General Electric (NYSE:GE) stock has been trading much better, and Wednesday’s bullish earnings reaction is helping longs on a tough day in the markets.
In fact, GE stock is helping all bulls on the day, as it helps keep some of that downside breadth volume from really collapsing. Maybe that’s a bad thing — creating an illusion — but it’s still worth pointing out.
Either way, GE has been trading better. It came in hard off the 200-day moving average, but the $7 to $7.15 zone held up well. Again though, that 200-day moving average continues to hold as resistance.
From here, I want to see GE close above the 200-day and take out its post-earnings high at $7.86. Above that opens the door to this month’s high at $8.03, followed by a possible test of the $8.50 area (the June highs) and the 38.2% retracement at $8.45.
On the downside, though, break of $7 could usher in a test of the 50-day and 100-day moving averages.
Top Stock Trades for Tomorrow No. 2: Boeing (BA)
Earlier this month, I was tweeting about Boeing’s (NYSE:BA) downward channel. Even with good news, Boeing couldn’t break out of this range. Now we’re seeing shares move lower on earnings.
The stock is declining back to the $150 mark, where it finds the 23.6% retracement. Maybe that will be enough, but investors have to be watching for a test of the September lows at $145.02. That’s followed by a test of channel support, currently near $135.
A break of the channel could drop shares down toward $120 and the 200-month moving average, currently near $118.
On the upside, however, it’s simple. Shares need to break out over the 50-day and 100-day moving averages, as well as channel resistance. Above opens the door to $188 and the 200-day moving average.
Top Stock Trades for Tomorrow No. 3: First Solar (FSLR)
First Solar (NASDAQ:FSLR) is ripping higher on earnings, up almost 12% as of this writing. The move is helping launch shares over its multi-year highs.
The stock’s rally sent it towards $98, with the key $100 level looming just above. That mark was support in 2010 and 2011, before giving way in ushering in significantly lower prices.
That’s the mark to watch on the upside. Over $100, and FSLR can continue to push higher. On the downside, I would love to see First Solar hold $82 as support. That was the high from 2018 and 2020.
Above this level leaves bulls in control, even though it will mean it took a hearty dip from high. Below puts the mid- to low-$70s on deck.
Top Stock Trades for Tomorrow No. 4: Facebook (FB)
Like the rest of big tech, Facebook (NASDAQ:FB) gapped higher in late July and rallied hard into September. The stock topped out around $300 and — again like most of tech — suffered a swift and painful pullback.
However, shares found support at the 100-day moving average and the prior breakout spot near $250. Trading in an upward channel now, bulls are hoping for some more upside.
If they get it, it would be encouraging to see FB take out $285, which was resistance last week. Above that and the stock can challenge channel resistance near $290, followed by a test of stiff resistance near $300.
Above that puts the two-times range extension in play at $311.30.
On the downside, I want to see channel support and the 100-day moving average hold as support. Below puts $250 in play, followed by the 200-day moving average.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in any of the securities mentioned in this article.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.