Public trading strategy
Consumer spending cracks show up in earnings — short struggling retailers
Thesis
Consumer spending is showing cracks as inflation and high rates squeeze household budgets. Petco's poor earnings and Five Below's slowing growth suggest the discretionary retail sector is running out of steam. When retailers warn that their growth is stalling, it usually takes months for the trend to reverse, making these stocks vulnerable to further declines.
Strategy approach
Build a rule-based strategy that enters short WOOF on H4 when the price closes below the lower Bollinger Band(20, 2) and RSI(14) is below 35. Set a 5% stop loss and a 10% take profit, with a 15-day max hold.