The Daily Breakdown looks at shares of Toast, which are trying to break out after a pullback to the 50-day moving average.
Thursday’s TLDR
Wall Street should be quiet today
Toast stock breaks out
Apple hits all-time highs
What’s happening?
Markets sold off hard on Wednesday Dec. 18th, with the S&P 500 losing 3%. Despite panic around Wall Street, the index has now erased that loss in just three trading sessions.
No one knows for sure what’s next, although that was a pretty good response from the bulls — even if Tuesday was a shortened trading session.
With a lack of macro- and company-specific events on the calendar, we’ll keep today’s note pretty short.
For today — and really, the remainder of the week and the year — traders can likely expect lower trading volumes as many investors are taking an extended vacation and looking to pick things back up in 2025.
Stocks are under slight pressure this morning, but let’s see if they can extend the current winning streak to four straight sessions.
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The setup — Toast
Toast has been on fire this year, more than doubling so far in 2024. That’s even amid the stock’s recent pullback.
Shares jumped higher in early November in response to a strong earnings report, ultimately running to new 52-week highs. After pulling back to the 50-day moving average, TOST stock is now breaking out over downtrend resistance.
Bulls want shares to continue rallying from current levels, and at a minimum, want TOST to stay above $35. If the stock can do these things, the momentum can remain bullish.
However, if the stock breaks down and can’t stay above $35, then momentum could turn bearish in the short term.
Options
For some investors, options could be one alternative to speculate on TOST. Remember, the risk for options buyers is tied to the premium paid for the option — and losing the premium is the full risk.
Bulls can utilize calls or call spreads to speculate on further upside, while bears can use puts or put spreads to speculate on the gains fizzling out and TOST rolling over.
For those looking to learn more about options, consider visiting the eToro Academy.
What Wall Street is watching
TM — Shares of Toyota are revving higher this morning, climbing almost 10%. The move comes after the automaker says it’s planning to double its previously expected return on equity (ROE). Investors are hoping the stock’s five-day win streak extends with today’s gains.
AAPL — Shares of Apple barely flinched last week, gaining 2.6% despite the volatility. It’s currently riding a five-week win streak and with Tuesday’s gain, hit another record high. The stock is up almost 35% so far this year. Check out the chart.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.
