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The S&P 500 and Nasdaq burst to 1% gains on Wednesday, helping to snap a number of stocks out of their recent downtrends. There are hopes that the rally will continue and worries that it will - again - come to an abrupt halt. Until then though, we have to trade what's in front of us. Here are our top stock trades for Thursday.
Top Stock Trades for Tomorrow #1: Micron (MU)
Micron Technology, Inc. (NASDAQ: MU ) has really teased the bulls. After bursting through the $50 level, shares quickly rocketed to $62. But, it wasn't long though before we found MU stock back at $46, despite good earnings results.
Now though, Wednesday's 4.5% rally has thrust MU back above downtrend resistance. The momentum-measuring MACD and overbought/oversold indicator that is the RSI (both in blue circles) bode well for bulls as well.
Our first target is the 50-day moving average, up around $52.20 and our second target is near $54. Investors can use a break below the 100-day moving average or back below previous downtrend resistance as their stop-loss.
Top Stock Trades for Tomorrow #2: Advanced Micro (AMD)
We definitely don't nail every trade and while we did incur some short-term pain with Advanced Micro Devices, Inc. (NASDAQ: AMD ) we did call AMD a buy near $10 .
After its earnings in April, we continued our bullish feelings on AMD because of its improving fundamental situation . Now poking through the last of all three of its major moving averages near $12, AMD stock could have upside to ~$13, where downtrend resistance comes into play.
Hitting $13 still represents almost 9% upside. Above that and $15 is on the table.
Top Stock Trades for Tomorrow #3: Box (BOX)
Last week we looked at Box Inc (NYSE: BOX ), observing that it was coming into $24 resistance. However, since it started from a higher base, there was a chance it could push through - and boy did it.
In a matter of days, BOX stock has eclipsed $27 and is boasting huge one-week and one-month gains. Now though, traders have to consider taking some off the table. If you like BOX for its fundamentals, that's one thing . But as a trade, it's getting stretched.
Top Stock Trades for Tomorrow #4: JPMorgan (JPM)
The banks are finally getting some love on Wall Street. I've been a believer in the banks and until this week, it hasn't been a great time.
After bouncing off $106 support, JPMorgan Chase & Co (NYSE: JPM ) has been off to the races. It's now above all three major moving averages and its prior highs between $116 and $118 are in sight. A breakout over this level would propel JPM even higher, but it may need to consolidate a bit before that move is possible.
Bank of America Corp (NYSE: BAC ), Citigroup Inc (NYSE: C ) and Morgan Stanley (NYSE: MS ) all look good too , just not as good as JPM at this point.
Top Stock Trades for Tomorrow #5: Electronic Arts (EA)
On Tuesday after the close, Electronic Arts Inc. (NASDAQ: EA ) beat on earnings per share and revenue expectations. That propelled shares to new all-time highs.
The trade here is a simple one: Over $130 and short-term bulls want to own EA stock. Long-term investors and even bullish swing traders will want to buy between $115 and $125, a wide range for sure, but one with tons of support.
I wouldn't bother shorting this one, unless it's a short-term break below $130. But overall, EA is a "no thanks" for me on the short side.
For the record, here's how we're handlingActivision Blizzard, Inc. (NASDAQ: ATVI ), which reported earnings last week.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell . As of this writing, Bret Kenwell held positions in AMD, BOX and JPM.
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