It was a volatile day in the stock market, given that it was a Fed day. Let’s look at a few top stock trades going into Thursday, where hopefully we will get more clarity.
Top Stock Trades for Tomorrow No. 1: Adobe (ADBE)
Adobe Systems (NASDAQ:ADBE) opened higher after reporting earnings, but hasn’t been able to sustain its gains.
The fade lower is also putting shares below the 10-day and 20-day moving averages, as well as that key pivot level at around $492.
On the downside, let’s see how the ~$465 level act as support. There Adobe finds the 50-day moving average, the 161.8% extension and uptrend support (blue line).
Should that area fail to hold, we could see some air come out of Adobe. It potentially puts the $420 to $430 area in play, but we’ll likely need to see some broader market selling to get there.
On the upside, we need to see ADBE reclaim $500 and Wednesday’s high at $505.50. Above puts the two-times range in play at $518.36. Over that and the all-time highs are in play.
Top Stock Trades for Tomorrow No. 2: General Electric (GE)
General Electric (NYSE:GE) was trading well on the day, up over 10% at its highs. The move is exactly what the bulls needed.
It sent the stock over the 20-day and 50-day moving averages, as well as downtrend resistance (blue line). Those now become support levels to watch on the downside.
If they fail, it puts $6 support back in play, followed by the September low at $5.93. Below and the $5.45 lows are in play.
Should support hold — or should GE continue higher before testing those lows — look for a possible rally to the 23.6% retracement, near $7.30. Above that could put the 200-day moving average in play, followed by the June highs near $8.50.
Top Stock Trades for Tomorrow No. 3: Boeing (BA)
Boeing (NYSE:BA) bulls will now be looking for similar action to GE, which is a rotation over the 20-day and 50-day moving averages, as well as downtrend resistance.
There was strength in the airlines and Boeing on Wednesday. As a result, I would keep them on my radar this week. A move over $175 could get a quick rally to $180, which has been acting as resistance.
Over $180 and maybe we could get a move to the 38.2% retracement near $187. Above that puts $200 on the table.
On the downside, bulls want to see the $155 to $160 area continue to hold as support. A close below could accelerate the selling pressure and gives traders little reason to own it in the short term.
Top Trades for Tomorrow No. 4: Gold ETF (GLD)
Gold is always in focus on Fed days, so let’s look at the SPDR Gold Trust ETF (NYSEARCA:GLD).
Last week, the GLD opened at the 50-day moving average and range support near $178. That held and shares quickly rallied higher, reclaiming the 10-day and 20-day moving averages.
Now holding those moving averages as support, shares are trying to rotate over last week’s high at $184.68. Above that and the GLD can make a push into the upper-$180s. Ultimately, we are looking for a move back to $190. Above puts the 261.8% in play near $197, along with $200.
On the downside, though, a break of the 10-day and 20-day moving average should turn bulls cautious, but they shouldn’t be alarmed as long as the GLD is above $178. Below and we’ll have some issues.
Top Trades for Tomorrow No. 5: GameStop (GME)
GameStop (NYSE:GME) has been trading much better lately.
We see that $6 resistance from earlier in the year is now acting as support, while GameStop has the 10-week moving average acting in its favor.
I would love to see it hold above the $8 mark. Even better would be a weekly above the last two weeks’ highs. Over $9 and perhaps we can see a tag of $11 and the 200-week moving average.
It’s a very, very wide range, but should we see a close below $6 and the 10-week moving average, that will be a cause for concern.
On the date of publication, Bret Kenwell held a long position in GLD.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.