5 Top Stock Trades for Friday: CMG, GRUB, IRBT, FEYE, MTCH

Stock Market

After some bearish headlines hit the tape regarding U.S. and China trade negotiations, stocks were under pressure. Traders are starting to pare back on their longs and are weighing the next few days to see what the market is going to do. Will investors really want to load up ahead of the weekend though? Seems unlikely. Still, we have a full plate of top stock trades to evaluate.

Top Stock Trades for Tomorrow #1: Chipotle Mexican Grill

Earnings reports continue to hit the wires and Chipotle Mexican Grill (NYSE:CMG) is moving as a result. Shares are up 13.5% to new highs after the company’s quarterly report.

Tagging $600, shares are holding up pretty well on the day given how poorly the overall market is doing. But what now? With an RSI of 80, it’s probably too late to chase CMG with confidence. That said, I wouldn’t short one of the market’s only strong performers.

So where to from here? Let’s see where shares consolidate over the next few days. If we get heavy selling, investors might be able to scoop CMG up on a discount. That’s similar to what happened to Chipotle in December.

Top Stock Trades for Tomorrow #2: iRobot

top stock trades for IRBT

An earnings and revenue beat has iRobot (NASDAQ:IRBT) rallying 9% on earnings, although the stock is off its session highs.

The $100-ish level is proving to be a tough nut to crack, although IRBT is holding up over downtrend resistance (blue line). If we get a few days of consolidation just below $100, but over downtrend resistance and over Thursday’s lows, then IRBT may setup as a great long. Below $92.50 and the 200-day moving average may be on the table.

Top Stock Trades for Tomorrow #3: GrubHub

top stock trades for GRUB

GrubHub (NYSE:GRUB) shares are down just 2.3% on Thursday after the company missed on earnings and revenue estimates. But the stock has done a tremendous job rallying off the lows.

The lows around $66 proved to be support, forming a double bottom off the December lows. It’s also got $85 in target, a tough layer of resistance. Currently over the 50-day, GRUB is looking attractive. With its big move lower and earnings miss though, I am somewhat skeptical.

Rather than buy now, I’d rather wait for a breakout over $85. If it happens, some think it could go to $100.

Top Stock Trades for Tomorrow #4: Fire Eye

top stock trades for FEYE

Plunging 13% on Thursday, Fire Eye (NASDAQ:FEYE) is under big pressure despite a top and bottom line earnings beat. The move thrusts FEYE below all of its major moving averages and leaves it dangling in no man’s land.

From the long side, I’d be interested in dipping my toe in the water near $15. Let’s see if it gets down that low or if it recovers before that. Near $15 and investors will have a great risk/reward on the long side.  A break below sets up a shorting opportunity.

Top Stock Trades for Tomorrow #5: Match Group

top stock trades for MTCH

Shares of Match Group (NASDAQ:MTCH) are up “just” 5% after beating on earnings and revenue estimates. I say “just” because the stock is well off its session highs after making new annual highs in the morning. However, investors need to remember how strong this name has been. Shares are up more than 75% from the December lows. Given that strength, this move feels more like profit-taking more than anything else.

Let’s see where Match sets up over the next few days. North of uptrend support and MTCH is still okay on the long side.

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.

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