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The markets were slugged on Wednesday following some hawkish comments from the Federal Reserve. With that in mind, let\u2019s look at a few top stock trades going into Thursday.<\/span><\/p>\n There it is, the breakdown to new lows in the Ark Innovation Fund<\/strong> (NYSEARCA:ARKK<\/u><\/strong><\/a><\/span>).<\/span><\/p>\n I know we just talked about ARKK the other day, but it warrants another discussion today. The exchange-traded fund (ETF) broke below the $89 low from last month and is doing so after today\u2019s Fed Minutes announcement that it will consider a more aggressive rate-hiking approach to 2022.<\/span><\/p>\n That of course is a huge negative for growth stocks, which have already been pulverized this year. (More on rates below).<\/span><\/p>\n We now have one of several situations that could develop, the first of which is a larger spill down toward the $75 area and the 200-week moving average.<\/span><\/p>\n The other scenario is a reversal. That can happen on a quick reclaim of the $89 level, with the new low to measure against being today\u2019s low. The other form of a short-term reversal would be a gap-down tomorrow that quickly reclaims today\u2019s low. If it\u2019s that scenario, we can use Thursday\u2019s low as our stop-loss (or just below it).<\/span><\/p>\n There are other developments that can take place, so don\u2019t be in a rush for one of these setups. If it comes to fruition, move with caution \u2014 not stubbornness \u2014 and if it doesn\u2019t come to fruition, don\u2019t force anything. There will be a time to get long eventually.<\/p>\n This morning<\/span> I broke down a chart<\/span><\/a> of the 10-Year Treasury Yield<\/strong> (INDEXCBOE:TNX<\/u><\/strong><\/a><\/span>). Initially, it was fading and I thought perhaps the short-term high was in. But then the Fed came out and signaled its plans for the future and the TNX shot back up again.<\/span><\/p>\n This is a huge negative for growth stocks, as you can see by the last two days worth of trading in ARKK and the Nasdaq Compostie<\/strong>.<\/span><\/p>\n Running into $1.69 resistance now, tech and bond bulls are hoping for a pullback from here. If it doesn\u2019t pull back, more pain may be on the way.<\/span><\/p>\n That said, a breakout over $1.69 may only put $1.75 to $1.80 in play before the TNX finds the 2021 high and declining 200-week moving average. Above that, and we may have a larger problem on our hands.<\/span><\/p>\n Litecoin<\/strong> (CCC:LTC-USD<\/u><\/strong><\/a><\/span>) was popping up on my scans on Wednesday, which is interesting as it\u2019s not usually a trending name. In any regard, we do have some caution on the chart.<\/span><\/p>\n The cryptocurrency is failing to hold the $141 to $142 area and is on the verge of losing $140. If we get a larger move lower, it could put sub-$110 on the table.<\/span><\/p>\n On the upside, it\u2019s pretty simple: Litecoin needs to reclaim the 10-day and 21-day moving averages, as well as downtrend resistance.<\/span><\/p>\n <\/span>Top Trades for Tomorrow No. 4: Palantir (PLTR)<\/h3>\n Sorry we\u2019re not ending on a good note today. If you want that, <\/span>just look at the chart of<\/span><\/a> CVS Health<\/strong> (NYSE:CVS<\/u><\/strong><\/a><\/span>). Otherwise, it was a tough day in the market.<\/span><\/p>\n Palantir<\/strong> (NYSE:PLTR<\/u><\/strong><\/a><\/span>) was no exception, falling almost 7% on the day.<\/span><\/p>\n Shares broke below the key $18 support level, as the stock quickly fell to the 2021 low near $17. It\u2019s doing so on bullish divergence, but for that to be significant, we need some type of reversal or rotation to the upside.<\/span><\/p>\n Back over $17.05 and we <\/span>may<\/span><\/i> see a rebound, but growth stocks are a tough place to be right now. Don\u2019t be too aggressive without any proof in the stock.<\/span><\/p>\n On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com <\/span><\/i>Publishing Guidelines<\/span><\/i><\/a>.<\/span><\/i><\/p>\n Bret Kenwell is the manager and author of <\/span><\/i>Future Blue Chips<\/span><\/i><\/a> and is on Twitter <\/span><\/i>@BretKenwell<\/span><\/i><\/a>.<\/span><\/i><\/p>\n<\/p><\/div>\nTop Stock Trades for Tomorrow No. 1: Ark Innovation Fund (ARKK)<\/h3>\n
Top Stock Trades for Tomorrow No. 2: 10-Year Rates (TNX)<\/h3>\n
Top Stock Trades for Tomorrow No. 3: Litecoin (LTC-USD)<\/h3>\n
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