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It's almost as if nothing happened on Tuesday as U.S. stocks bounced back with a vengeance Wednesday. The S&P 500 and Dow Jones each tacked on about 1.5%, while the Nasdaq tacked on almost 1% after holding up pretty well amid the selloff. With that in mind, here are our top stock trades for Thursday.
Top Stock Trades for Tomorrow #1: Salesforce (CRM)
How many times do we have to pound the table when it comes to Salesforce.com, inc. (NASDAQ: CRM )?
This is a buy-and-hold stock that investors should gobble up on each of its generous pullbacks. Its growth is too strong to ignore as CRM operates in a booming, secular industry. So when it comes in, we buy. Simple as that.
Although it's off its highs, investors have to be happy with CRM's performance, up almost 30% this year.
Top Stock Trades for Tomorrow #2: FedEx (FDX)
What a tease FedEx Corporation (NYSE: FDX ) has been. It continues to flirt with a breakout over $255 and while we're not there yet, it's getting close.
Since falling below $255 in early February, FDX has meaningfully tried to breach this level four times. Each time it's done so, FDX has put in a higher low (shown with yellow circles). That's pretty constructive for bulls.
Should FDX reverse and put in a lower low, then it will be worth re-evaluating. But as of now, a breakout could be brewing. Keep this one on your radar.
Top Stock Trades for Tomorrow #3: Michael Kors (KORS)
It wasn't a good day for Michael Kors Holdings Ltd (NYSE: KORS ), which fell 12.5% despite beating on earnings per share and revenue expectations. The fall wasn't just enough to discourage investors - it also thrust KORS stock below key support.
It's clear that just above $60 is pretty meaningful support. While KORS did bounce from an almost-touch of its 200-day moving average, I worry about it below this level.
Should it rally and stay above $60 this week, it's worth another look. But below this mark and bulls should be careful. Bears will likely pile in should the 200-day give way.
Top Stock Trades for Tomorrow #4: Tesaro (TSRO)
Let's be real: Tesaro Inc (NASDAQ: TSRO ) is not a stock we want to be involved with. Shares sank 10% Wednesday and are hovering right on its prior lows.
The short float is just north of 23%, so it's getting a little crowded on the short side. But that isn't a catalyst to go long, not with the charts looking like this.
A break below $45 could get a panic flush going, somewhere down toward the low $40s. That's where its downtrend channel support should come into play, despite $45 acting as though it may hold.
There's no way I'd touch this thing right now.
Top Stock Trades for Tomorrow #5: Etsy (ETSY)
Above is a three-year weekly chart of Etsy Inc (NASDAQ: ETSY ), shares of which are jumping nearly 4% Wednesday and are just pennies away from new all-time highs.
ETSY is above all three major moving averages (not pictured) and shares are now knocking on temporary resistance. Should things really fall apart, there's strong support below but it's a long ways off.
So how do investors play? A breakout over $32 likely fuels a run up to $36. There's still a decent amount of the stock shorted too, almost 7% of the float. Should shares start to breakout, that could spark a short-covering rally and add to the potential short-term gains in ETSY.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell . As of this writing, Bret Kenwell held a position in CRM and FDX.
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