The stock market had a big bounce on Tuesday and started off higher on Wednesday as well. By lunchtime though, investors were staring at ~1% losses across the board, although they have since erased about half of those losses. What’s going on out there? We remain in a messy, choppy market after the indices’ big rally off the December lows. Let’s look at what’s moving in the market today and get an idea of what top stock trades to watch going through the rest of this week.
Let’s talk about the iShares Russell 2000 ETF (NYSEARCA:IWM). This name has been a leader over the past few quarters, both on the upside and the downside. Earlier this month, the IWM put in a lower high from the month prior and failed to hold its 200-day moving average.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It’s now below the 50-day and 20-day moving averages as well. The setup is…not great. But that said, it’s not like the rally is completely giving way. There are some negative catalysts working against stocks — like fears of a global recession — but the Fed remains patient and earnings aren’t getting sacked.
That, to me, limits our downside. However, that does not mean we’re immune to a pullback and/or consolidation. Bulls may want to be a bit more cautious, at least until the IWM can recapture the 20-day and 50-day moving averages. I’m not a huge fan of the lower highs and lower lows, but that concern is only that, as long as we’re over $145.
Cronos Group (NASDAQ:CRON) is down about 10% after a number of downgrades came in following the company’s quarterly results.
So far, the 38.2% Fibonacci retracement for the 52-week range is holding up as support, but CRON is far from out of the woods. If this level fails, there could certainly be more downside.
The prior breakout is down near $14 to $15, while the 50% retracement is at $15.06. So should CRON take out Wednesday’s lows, this could be its destination down the road. Dip buyers need to use caution, especially with CRON below the 20-day and 50-day moving averages.
A slightly higher open on Thursday followed by a decline that takes out Wednesday’s low could give bears a low-risk short-term shorting opportunity.
Shares of Paychex (NYSE:PAYX) started off higher on the day, but faded from its opening gains after the company beat on earnings and reported in-line revenue results. PAYX stock is now down almost 2% on the day.
The report wasn’t necessarily bad, but perhaps it wasn’t enough to sustain new highs. Worth noting though, PAYX did make new 52-week highs in the session. That said, it’s near channel resistance on the weekly chart.
At the very least, bulls may wait for a pullback into the 20-week or 50-week moving averages. However, waiting for a potential test of the 100-week moving average and/or channel support has proven to be much more prudent. It also allows bulls to enter into a less risky setup should it get there. Patience may be key here with PAYX.
Shares of Southwest Airlines (NYSE:LUV) are rallying despite the company cutting its capacity guidance. A stock rallying on bad news is a good sign for a possible bottom.
In either case, bulls have a reasonable setup. So far, the stock is holding above the 200-week moving average. Should the stock lose this level the recent lows near $45, it will tumble into no man’s land. $45 is a notable multi-year level, but there’s potential uptrend support (purple line) near this level as well.
Aggressive bulls can go long on a weekly close over the 200-week moving average. Conservative bulls may want to wait for a potential pullback. If it materializes, an entry near $45 sets up a low-risk long.
The Trade Desk (NASDAQ:TTD) has been a growth monster this year, but shares have been getting whacked over the past few sessions. Short-term uptrend support (blue line) didn’t hold as support, nor did the 20-day moving average.
That leaves the post-earnings open and the 50-day moving average near $170 on the table. Should these levels fail to hold, growth investors sure would love to snap this name up between $150 and $160.
If you like mid cap growth stocks, TTD should surely be on your list. But keep in mind, it’s a volatile one, so investors need a strong stomach.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities.
让我们谈谈 iSharesRussell2000 ETF （ NYSEARCA ： IWM ）。在过去的几个季度里，这个名字一直处于领先地位，不管是上升还是下降。本月早些时候， IWM 与上月相比处于较低的高位，未能保持其200天移动平均值。
对我来说，这限制了我们的下行趋势。然而，这并不意味着我们不会受到回调和/或整合的影响。看跌黄金的人可能会更谨慎一些，至少要等到 IWM 能够恢复20天和50天的移动平均线。我并不是低点和低点的狂热粉丝，但只要我们超过145美元，这种担忧就只是那一点。
Cronos Group ( NASDAQ : CRON )股价下跌约10%，此前该公司发布了季度业绩，多次下调评级。
到目前为止，38.2%的斐波纳契收缩52周的范围是作为支持，但 CRON 是远离树林。如果这个水平失败了，肯定会有更多的下跌。
之前的突破下跌了近14美元至15美元，而50%的收回是15.06美元。因此，如果 CRON 走出周三的低点，这可能是它的目的地。Dip 买家需要谨慎行事，尤其是 CRON 低于20天和50天移动均线。
Paychex （ NYSE ： PAYX ）的股价当日开始走高，但在公司业绩好于盈利并公布了在线收益后，其开盘收益有所下降。PAYX 股价当日下跌近2%。
这份报告未必糟糕，但或许不足以维持新高。不过值得注意的是， PAYX 在这次会议上确实创下了52周来的新高。话虽如此，周线图上的通道阻力已接近。
至少，看涨者可能会等待20周或50周移动均线回落。然而，等待对100周移动平均和/或信道支持的潜在测试已被证明更加谨慎。它还允许多头进入一个风险较小的设置，如果它到达那里。耐心可能是这里的关键与 PAYX 。
西南航空（ NYSE ： LUV ）股价上涨，尽管该公司削减了产能指导。在坏消息中反弹的股票是可能触底的好迹象。
交易台（ NASDAQ ： TTD ）今年一直是一个增长怪兽，但股票在过去几个交易日一直受到重创。短期上升趋势支撑（蓝线）没有支撑，20天移动均线也没有支撑。
如果你喜欢中盘股， TTD 肯定会在你的名单上。但请记住，这是一个不稳定的，因此投资者需要一个强大的胃。
BretKenwell 是 FutureBlueChips 的经理和作者，并且在 Twitter @ BretKenwell 上。截至本文撰写之日， Bret Kenwell 未持有上述任何证券的头寸。