2 top stock trades for Thursday: ARKK, PLTR

I know we just talked about ARKK yesterday, 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's Fed Minutes announcement that it will consider a more aggressive rate-hiking approach to 2022.

That of course is a huge negative for growth stocks, which have already been pulverized this year. (More on rates below).

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.

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's low. The other form of a short-term reversal would be a gap-down tomorrow that quickly reclaims today's low. If it's that scenario, we can use Thursday's low as our stop-loss (or just below it).

There are other developments that can take place, so don't be in a rush for one of these setups. If it comes to fruition, move with caution — not stubbornness — and if it doesn't come to fruition, don't force anything. There will be a time to get long eventually.

Shares broke below the key $18 support level, as the stock quickly fell to the 2021 low near $17. It's doing so on bullish divergence, but for that to be significant, we need some type of reversal or rotation to the upside.

Back over $17.05 and we may see a rebound, but growth stocks are a tough place to be right now. Don't be too aggressive without any proof in the stock.