Today is a pretty monumental day as my black lab turns 13 years old. My, how they grow up so fast. When I took him for his annual check up, the vet was surprised that he is still alive.
He still moves and acts like a two year old, so there is nothing to be worried about; however, in honor of his birthday I thought I would take a look at his favorite store, PetSmart (PETM).
Although all stocks are being hit as hard right now, I believe that PetSmart is, for lack of a better phrase, recession proof.
Yes, many think that because the economy is down people will spend less on their pets, but, as most pet owners realize, we tend to treat our pet as our own flesh and blood. In fact, we probably treat them better than anybody else in our lives. You just can’t change your pet’s diet.
The problem is not all stock traders are pet owners, so, of course, PetSmart had to take a dive.
Looking at the chart is seems like PetSmart has created some sort of rhombus (learn your geometry). In the short term, the stock has created a solid upward trend. Clearly hitting the support three times.
Overall, the stock seems like it wants to push higher; however, there are many acts of resistance depending how you look at it.
I would feel safe buying it anywhere above $18 (don’t like if stock dips below), with the target of reaching $21. If PetSmart can breach above that line, then it looks like clear sailing up to $28.