Stock Focus PETM

We have 3 stocks that we will watch closely on Tuesday, but our favorite is Petsmart (PETM). The stock gapped higher last Thursday on good earnings and guidance. PETM consolidated on Friday and yesterday, which is a good sign for an upside move. We are using Friday’s high of $25.68 as resistance and we expect to see a strong move once it breaks through that price level. What’s nice about this trade is the possibility that we could see a multi-day move once the stock breaks through. There is a chance the stock will consolidate again on Tuesday, but you want to watch in case it takes. The worst feeling is when you see a move coming, but forget about the stock and it takes off without you.

We also like Smithfield Foods (SFD) for a bull flag breakout move.

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Mickey Welcher is President of Spectral Asset Management LLC and works with Today Trader. He has extensive trading experience and money management for clients. If you have any questions, please contact him at mickey@spectralam.com