The markets initially rallied on Tuesday, as the Federal Reserve cut interest rates by 50 basis points. However, volatility then surged as equities fell lower. That said, let’s look at a few top stock trades for Wednesday.
Also, just as a reminder, be careful trading out there. Realize cash is a position and not all environments are suitable for trading. When the Volatility Index is $30 to $35-plus, all sorts of moves can be senseless and erratic. If this isn’t your style — and it isn’t for a lot of people — there’s no shame in waiting for things to cool off a bit.
Top Stock Trades for Tomorrow No. 1: Tesla (TSLA)
Tesla (NASDAQ:TSLA) would not be the first safe-haven play for me amid a high-volatility trading environment. But it’s got investors’ attention, as shares were popping more than 7% at one point on Thursday.
On Friday, Tesla shares bounced hard off the 50-day moving average and $620 level. That’s bulls’ downside mark to watch now, as below that opens the stock up to $500 and the 100-day moving average.
On the upside, though, Tesla was sold after running up to $800. That’s the upside mark to reclaim now, even though Tuesday’s decline from this level likely had more to do with market’s big fall.
Over $800, and technically speaking, $950 resistance is possible.
Top Stock Trades for Tomorrow No. 2: Tilray (TLRY)
I have been critical of Tilray (NASDAQ:TLRY), as shares have been locked in a vicious downtrend for months now. After reporting earnings, that hasn’t changed — with shares falling to new lows on Tuesday.
Below $15, and TLRY remains trapped beneath notable support. If it can reclaim this mark in the near-term, though, it puts the declining 50-day moving average and downtrend resistance (blue line) on the table.
Furthermore, if TLRY clears the 100-day moving average, then a move toward $25 is possible. But given the environment we’re in right now, I wouldn’t be looking for an upside breakout in TLRY any time soon.
Top Stock Trades for Tomorrow No. 3: Gold ETF (GLD)
The SPDR Gold Trust ETF (NYSEARCA:GLD) caught a bid on Tuesday, but is struggling to rally with a significant amount of momentum. That’s surprising, given that gold is usually a “flock to safety” trade, and as the Fed cut interest rates notably on Tuesday.
With the fundamentals in play (lower rates), I wouldn’t be surprised to see GLD challenge the $155 to $156 area sometime this week. If that’s the case, new highs can’t be ruled out. However, below $152.50, and investors have to be prepared for the possibility of a test of the 50-day moving average.
Overall, keep it simple — especially in this environment. Above $152.50 keeps $155-plus on the table. Below, though, puts the 50-day in play.
Top Stock Trades for Tomorrow No. 4: Cronos Group (CRON)
Like Tilray, Cronos Group (NASDAQ:CRON) is breaking to new lows on Tuesday. Below the $6 to $6.50 area, and it’s hard to be bullish on this name from a technical perspective.
Clearing the $7.50 mark, however, changes the narrative. That will mean CRON reclaimed the $6 support area, as well as cleared the 50-day and 100-day moving averages and downtrend resistance.
Collectively, keep an eye on this name if cannabis investing is part of your strategy. A rebound to the $6 to $6.50 area that’s sold into could send CRON back down to its lows. Over it could start to shift momentum back in bulls’ favor.
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