Hey Traders,

Bill Griffo in the Pit Report today.

Nordstrom Inc. (Ticker: JWN) is the stock pick this week … 

JWM is a top retailer in the competitive US market. 

They have built a loyal customer base, giving them the advantage of pricing power over competition.

They have also built a significant presence in the e-commerce space with 38% of sales coming online. 

The economy has been tough on retail, but with the Fed tightening cycle coming to an end shoppers may be filling stores in the near future …

Today, I will show you why I think the stock is a buy and a trade to consider …

Calling All Shoppers …

Nordstrom is heavily discounted for the spring season … get it while it’s hot! 

The chart below shows JWN ready to complete a positive price/relative strength (RSI) divergence.

If the stock makes a new low while RSI closes with a higher low, you’d want to buy: the reversal pattern triggered is very reliable.

A 5-Star Discount

Morningstar gives JWN a 5-star valuation with a $40 dollar fair value price. 

Its price-to-sales is at a historic low at $.18 with a return on equity of 37% and $473 million free cash flow. 

‘Tis The Season To Be Long JWN

Check out the bullish seasonal pattern for JWN:

Now is the time to buy JWN and ride one of the most powerful seasonal periods of the year for the stock. 

What’s The Trade?

Purchase an April 28 16.5/19 call spread for $1.15 …

This is an ideal trade to capture the seasonal tailwind over the next few weeks. 

You’ll also likely catch the Fed signaling a pause from hiking interest rates. Then, JWN will be off the races. 

Like real estate trading is all about location, location, location …

If you buy JWN here and you’re wrong, you can stop yourself on a close at new lows and limit your loss. Low risk/high reward trades will build generational wealth. 

Until next time …

Live and Trade With Passion My Friend,

Griff