Thursday evening

They can't all be up days ...

Things could change this afternoon but if you're long ... well ... so far this is not a good day to look up.

Thursday Morning - High FIVE

Gator's Chart of the Day: FIVE

Five Below, Inc. is a specialty retailer.  The chart shows all trading since the company came public last July.  The lower white line marked the post earnings announcement high and the stock just closed above that level (37.85) on Wednesday.  The upper white line defines the all-time high of 40.00 and is now the next resistance level.  The next earnings date should be near the end of February but has not yet been announced.  On February 4th there was considerable insider selling that included multiple directors and the CEO.  You can check the details of those sales here.  The forward P/E is 54 so it's possible these folks had a good reason to sell but maybe not.  I think there is a trade here and it is well defined with minimum risk.

The Trade 
I would look to open the position if the stock holds 37.85 and buy as close to that level as possible.  My stop would be about 36.90 so risk is about 2.5%.  I would look to add if the stock trades above 40 and holds that level for 20+ minutes.  Since there would be nothing but blue sky above 40 and I don't want to hold through earnings I would use the previous day's low as I progressively raise stops and let the stock take me out when it tires.