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5 Top Stock Trades for Wednesday: GM, AAPL, SHOP, GRUB, PFE

More new highs were in store for the S&P 500 on Tuesday. Let’s look at a few top stock trades from the day, some of which helped fuel the market’s push higher.

Top Stock Trades for Tomorrow No. 1: General Motors (GM)

Now that the with General Motors (NYSE:), the company can get back to business. So can its stock price. The company’s earnings beat helped fuel about a 4.7% rally on Tuesday.

The stock continues to put in a series of higher lows (blue line), but has been struggling to clear the $39 to $40 area so far this year.

If GM is able to hurdle the congestion in that zone, a run into the low-$40s could be on the table. Should GM again fail to penetrate this area though, lower prices could be in store. Specifically, watch the 38.2% retracement for the one-year range near $37.50. Below that puts the 50-week and 100-week moving averages in play, which puts $34 to $35 in play.

Below the 100-week moving average and investors should be cautious.

Top Stock Trades for Tomorrow No. 2: Apple (AAPL)

Apple (NASDAQ:) hit new highs in Tuesday’s trading session before reversing lower. My concern with Apple has been the big pre-earnings rally we’ve seen this month.

When the stock pulled back at the beginning of October, former $215 resistance held as support and AAPL snapped right back into gear. InvestorPlace readers .

Now, though, Apple has become a tough play ahead of earnings. Perhaps if shares have another decent fall on Wednesday before earnings (after-the-close), it may setup as a decent long. Otherwise, use caution with Apple up here. On a rally, see if it can close above $250.

Top Stock Trades for Tomorrow No. 3: Shopify (SHOP)

What a choppy name Shopify (NASDAQ:) stock has been. I’m still of the belief that SHOP stock needs to test its 200-day moving average, but so far, it’s staving off a collapse, even asa it’s down about 5% .

The 50-day moving average was once support, and it’s now turned to resistance. We need to see SHOP stock clear this mark and the 100-day moving average to get anything substantial going on the upside. Over $340 would be ideal.

Now near $311, bulls have to be careful. While the October low is roughly $20 per share away, a break below that mark would not be good. It would drop SHOP below its 61.8% retracement and put the September low of $286.07 on the table.

That opens up the door to a test of the 200-day moving average and possibly the 50% retracement.

Top Stock Trades for Tomorrow No. 4: GrubHub (GRUB)

of GrubHub (NYSE:) as competition heats up vs. its peers. Still, I thought I misread the quote when I saw GRUB down more than 40% on the day.

Maybe it’s finally priced appropriately as an investment, but as a trade, there’s not much left to pick at. The short side looks exhausted after a 40% one-day decline. Yet on the long side, this is a falling knife if I’ve ever seen one.

If it can hold $32.50 on the downside this week, then maybe, just maybe, you could make a case for a small long position for the aggressive bull out there.

Top Stock Trades for Tomorrow No. 5: Pfizer (PFE)

Pfizer (NYSE:) is up after a top- and bottom-line earnings beat and better-than-expected guidance.

The setup from here is actually quite simple. Above the 61.8% retracement and the 100-day moving average at $38.47, and PFE can continue higher, potentially up to the 50% retracement and 200-day moving average.

Above that and it can begin filling the gap up toward $41. Below Tuesday’s low, and PFE may fill its post-earnings gap down toward $37.50. Keep it simple.

Bret Kenwell is the manager and author of and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AAPL. 

The post appeared first on InvestorPlace.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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