BY ANDREW GIOVINAZZI
May 20th, 2025
Yo Pit Crazies,
I’d love to write about the next move in the S&P 500 Trust ETF (Ticker: SPY), but in the short term, it’s likely to remain range-bound as Congress debates fiscal policy and spending levels—decisions that will impact not only us, but future generations through rising national debt. Ultimately, it won’t be Congress that dictates the path forward—it will be the bond market. And when that reality sets in, we may be headed for what I call the ‘Cash Collision.’
Yields are currently at their highest levels in two years—and they’re unlikely to come down until Uncle Sam finally puts the credit card away. In the meantime, equities are expected to remain range-bound, with the potential for near-term weakness in the SPY if investor confidence starts to erode.
What never loses hope? Pets—loyal, optimistic, and always ready for fun.
One thing will never change: people love their pets. And there’s one company that loves them almost as much as their owners do.
Chewy Inc (Ticker: CHWY) is a buy!
I came across CHWY some time ago and was impressed by how they succeeded where Pets.com fell short. CHWY was a ‘Flash 10’ stock during the rebound, climbing to over $100 post-COVID before pulling back to $15. I managed to pick up shares along the way at $24, $20, and $16. The company continues to show solid growth and has smartly expanded into pet medications—a segment where more than a few fortunes have been made.
I have a $50 price target on CHWY, ideally by June—but given the current pause in growth stocks as Congress continues to drag its feet, we may have to wait until late summer. That said, once momentum returns, I believe CHWY is poised to run hot for a while.
To Your Trading Success,
AG
Andrew Giovinazzi
30-Year Trading Pro
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