Here’s my take on the S&P, and on Freshpet $FRPT – September 3, 2024
Dan Fitzpatrick here at StockMarketMentor.com. Happy September, a nice way to start the month, huh? It shouldn’t be a surprise because September is historically the worst month of the year when it comes to stocks.
The S&P ( NYSEARCA: SPY ) closed down 2 percent today, that’s not a good beginning of the month, that’s for sure. This is what you have got to see, we had an up-close on Friday to mark the end of a positive month. We have to end on a positive note for August so the bulls will keep running.
That’s what they did, they sucked everybody in, and then the market gapped down a bit. Overnight I was looking at the Futures in the S&P ( NYSEARCA: SPY ) and they were really down, then later they came back up. They did really, really suck, and then they came back to they pretty much suck.
So it was really a bad open, but check this out, brace yourselves, this was just a constant selling. The only reason, in my view, that this thing traded sideways for a bit, is because traders that have been selling here went to lunch. They had a smoke break outside, and then when they got back, right around 2 o’clock, the selling continued.
This was really weak all day, which does not make people happy, that’s for sure. It didn’t make me happy, though, truth be told, I didn’t even trade today. I couldn’t even find anything. But, let me show you this, Freshpet ( NASDAQ: FRPT ). Contrary to the S&P ( NYSEARCA: SPY ) traded, Freshpet ( NASDAQ: FRPT ) was actually up for most of the day. And then right around 2 o’clock, this started fading just like the broader Market.
But during the morning this was running hot on high volume. Not just right at the open, but it stayed up there for most of the morning. And then right at the end of the day, we could say, Okay great, we got a big massive close. Yeah, but the stock is fairly illiquid, it traded almost 750,000 shares today. The thing that was important to me is, this was heavier than average volume, slightly above average volume. The stock did close off of the 140.00 breakout.
So this is my suggestion to you, don’t trade anything if it’s not going up, I’ll tell you that. Like NVIDIA ( NASDAQ: NVDA ) Freshpet ( NASDAQ: FRPT ) ) is going lower, it’s really okay to not own that for a while. It’s really okay, you’re not going to get kicked out of school, you’re not going to get shamed, you’re not going to get canceled.
The thing that you want to do with Freshpet ( NASDAQ: FRPT ), though, is don’t buy it here at 137.79. Buy it when it trades back above 140.00, and then you keep your stock just a little bit below today’s intraday low. That way you can contain your risk, and keep it pretty low, 3-3.5 percent. You’re buying this on a rare breakout because, with most stocks, any breakouts turn out to be breakdowns.
So wait for this thing to confirm itself. This was a positive move today, it was a good sign. But it’s not enough because the stock did trade-off, and it traded off on pretty good volume. So wait to see if buyers return to this market, and if the sellers are done doing their business at 140.00.
Free Chart