There is a lot going on right now and the headlines make it a challenge to pay attention to anything other than war, inflation, gas prices and COVD wind down. Meanwhile in the background of all of this there are a few stocks that are setting up for some nice moves.
At some point the broader market will hit a bottom. Until then, that gravity will tend to pull stocks down. When we start to level off, these bargains have the potential to really take off.
WOOF is the ticker for PetCo. This retailer has been on an acquisition binge scooping up veterinary practices and broadening their reach into the pet care space. The chart above shows that we recently tested a previous high and are staying above the 50 day moving average. We can also see the MACD cross over and start to drift up. These all show the potential for an upside move.
When we are in a down market a lot of stocks will get oversold and be pushed below their real value. If you can spot the ones that are going to out pace the market when we see the shift, they can make great bargain buys.
If you want to get an idea of how to confirm we are at a bottom and the broader market is reversing, check out Lee Gettess guide to momentum. His method for spotting an exhausted trend that can signal an immanent turnaround. You can grab it here.
Keep learning and trade wisely,
John Boyer
Editor
Market Wealth Daily
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