Momentum Monday – Nike and Lululemon at New All-Time Highs

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The bull market in the U.S. is alive and well with retailers and consumer stocks leading the way. Apple keeps rising despite its enormous size. Nike and Lululemon broke to new all-time highs. Weed stocks have been on fire ever since Constellation Brands bought 40% of Canopy Growth. Dip buyers are starting to get active in Netflix, Nvidia, and Chinese stocks. Highly-shorted stocks like MTCH, DDD, and PETQ are squeezing higher. Overall, there are a lot more reasons to be bullish than bearish.

Is PetIQ Ready for a Monster Short Squeeze?

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Keep an eye on PETQ tomorrow. They make pet medications and are growing at an impressive pace: 98% quarter-over-quarter sales growth and 39% earnings per share growth. PetIQ just absolutely crushed earnings estimates, reporting $0.64 while the market expected 0.38! They also raised their full-year guidance. More importantly, the stock is up 15% after the close and it is trading at new all-time highs near $32. 37% of its tiny 14-million-shares float is short. There’s a decent potential for a short squeeze in the next few days with a target 35-40.

Here are some interesting comments on Twitter that add a fresh perspective to PetIQ’s numbers:

Momentum Monday – Can Emerging Markets’ Weakness Spread to U.S. Stocks?

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While most emerging markets are under pressure, U.S. stock indexes are still trading near all-time highs. How long can this decoupling persist?

Can the record corporate earnings and sales growth alleviate the fear of emerging markets’ contagion? So far the answer is a resounding Yes as dip buyers continue to be active on the slightest pullbacks.

It’s not all sunshine and rainbows in the U.S. markets either. While retailers and software stocks are crushing estimates and breaking out, homebuilders are near 52-week lows. Maybe rising interest rates are finally starting to matter for some sectors or at least the market believes they will matter for future earnings.

We also go over some new ideas.