Do you like animals? Then check out PetIQ (PETQ). (July 21, 2017)
PETQ
I want to look at PetIQ ( NASDAQ:PETQ ) today. This isn’t a daily chart it is a 5-minute chart. The stock started trading on Friday and you can see what happened. I think the IPO price was kind of close to Snap ( NYSE:SNAP ) only in an opposite direction, at least for the first day, $16.00; you can see where the stock closed. This is a TAOR stock, that is an acronym for Trade at your own risk. Typically I don’t cover this kind of stuff but this is a special situation; because unlike Snaptwit this company actually makes money and their earnings growth is pretty much off the charts, which tells you why this stock moved up the way it has.
Here is my suggestion: Again, trade at your own risk, this thing could do ANYTHING and the only thing that I am going to say is, have a stop-loss in place. Know exactly how much you are willing to risk in order to place this trade. If we zoom out here to the 15-minute chart, this is how you can trade this thing on Monday. First of all, if it drains down below 23.00 then stay away from it. Period. End of story. Just stay away from it. I would buy this stock if it breaks out to a new high; 23.49 is the after hours high, but we will just look at the daily high, 23.34.
I am setting a price alert at 23.40. If the stock starts trading above that level I am going to buy this puppy. I will put maybe a 2 or 3 percent stop loss on it. This could be one of those stocks that just keeps moving up, you get 10, 15 percent moves in a day. Just make sure, again, that if it does reverse, it has been trading for a day so I am not pounding the table on this thing, you got to get in, you got to get in. The time to get in on this thing was back before it went public at $16.00. Now, before too long, I think you wind up having a double.
Look at the intraday trading though, because this is what really matters. You are going to see the most volume first thing in the morning. And then if the stock is above where it opens, say 9.40 or something like that, then I want you to go ahead and get long and just contain your losses with a simple percentage, rather than a specific level on the chart. Because when it has been trading only this long specific price levels really don’t matter that much. What does matter is, how much dough are you willing to risk? I will be back and we will look at this on Monday night as well.
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