Wake Me Up When September Ends

You know what they say: If there’s blood in the water, play ball! I might be confusing a few phrases here but you get my point. Don’t let the sea of red on your screen deter you from making some trades. The Dow hit its lowest point in 2022 this last week as I’m sure some of you lovely folks did as well. Just remember, when you’ve hit your lowest, there’s nowhere to go but up…or if you are like me, getting a jackhammer (going to the ATM) and finding a way to go lower ($2000 on hard eight).

There was some strong negative momentum most of last week in SPY. If you like candlesticks, the week finished with 3 black crows on some high volume. If you like support and resistance, SPY fell below the $370 level which had provided some support back in June and July. If you like more inclusive indicators, there was a bearish moving average crossover towards the end of last week. However you look at the chart, it looks pretty bearish. SPY is still sitting above the 52 week low by a few dollars and if everyone is thinking it will go lower, it could set up for a short squeeze. So, there’s a chance it could jump higher this week but it would most likely be short-lived.

Weekly Watchers

Costco Wholesale Corporation (COST)

While hotdog and drink combo enthusiasts were cheering that Costco will never raise their prices on that regardless of inflation, Wall Street was not as impressed after Costco reported earnings. Costco beat earnings late last week but the market didn’t like it. Maybe they’re fed up with their parking lots or the industrial sized, yet affordable lube bottles for sale at extremely reasonable prices (Or so I hear). Whatever it is, the stock fell and is poised to continue falling this week especially if the overall market dives as well.

Freshpet, Inc. (FRPT)

Who doesn’t love the idea of fresh food for our furry little friends? Maybe if this trade works out you can afford to treat your best friend! I personally haven’t tried this food so I can’t comment on the taste, I’m more of a Cesars wet food fan myself. They offer tons of flavors, great packaging and just enough bacteria in each packet to keep me at my goal weight without having to work out. I can’t really be more than 300 feet from a toilet, but I do what I have to do for a body the bitches love.

Anyway, this stock learned a new trick and jumped up late last week due to the news of a 10% stake from activist investor Jana Partners. It’s showing the beginning of a possible bull flag on the daily chart so watch for it to break the high or low of Friday for a trade opportunity.

Phillips 66 (PSX)

If you love huffing gas then you’ll probably like this trade idea. Phillips 66 makes crude oil and fuels and lubricants among other things. The lubricants they sell at Costco as we previously discussed and they try to keep the crude oil away from their company dinner parties. Its stories are, well, crude. They always have to do with paying people for a remote spot of land so sweaty dudes can start drilling loudly. It gets dirty.

What is not dirty is the support line at $75 on the stock. It has bounced before and it could bounce again. Or it could tell $75 to frack off.

DICK’S Sporting Goods, Inc. (DKS)

Everybody is short DICK’S. Why are all the letters in their company name capitalized? Is it an acronym? Are they compensating for how short everyone is on their stock? I don’t know but if they ever decide to expand their offerings by taking a page out of Gap’s playbook and opening up Baby DICK’S, I am buying so many shares. OshKosh, look out mother fucker. Here’s some competition you won’t even feel. Baby DICK’S.

All I’m saying is the stock price is resting on a lower trend line and the 50 day SMA and has a 26% short float. If anything positive makes DICK’S twitch this could be in for a little short squeeze. Nothing that’ll damage anything. But a firm grasp from the buyers letting those short DICK’S know who is in control.

Earning Yearnings