COST: Welcome to CostCo Earnings, I love you!
This one was truly a no-brainer for me the other day, but I was waiting to publish on the earnings news. COST is up 5% is afterhours with a potential blowout day tomorrow on market open. I also believe that the financial media will latch onto this good news from them with a fervor in hopes of pushing back a little on this current bear market sell off index wide. I do believe that COST has a possible long run up, but I'll be setting my stops tight until I see upward action for longer than a week. I bought into this a few days ago anticipating that the post-earnings action would be an upward reversion towards a long term mean because even though COST did rise slightly in January, they didn't experience a stellar blowout like some others and I felt that they were due with their holiday shopping earnings report the same as TGT and KSS. I do have profits from TGT and stayed out of KSS because of higher volatility, and it appears the cautious value investor in me made the right decision in this choppy market.
MACD has been floating mildly flatly with only a minor dip today that bounced back of the signal line in after hours activity. The bullish breakout in January wasn't strong enough to pull up the ADX trend strength index above a 20 yet, and I suspected that the +DI would bounce off the -DI as a support in the couple of days leading up into earnings to have a sharp breakout above the 50 and 200 day moving averages as resistance is being tested and the bulls will win have won out on earnings in pre-market. RSI appears to be testing a resistance near 50 as well, but momentum is beginning to look positive and may remain so if the breakout settles into a strong trend channel upward. Money flow is positive, and it looks like the few bears that bet on a bad earnings call are going to get squeezed out fairly quickly for some easy bull trap bait. Volume began to rise right before the call, and will break out hard tomorrow on market open, too.
Welcome to CostCo, I love you!
MACD has been floating mildly flatly with only a minor dip today that bounced back of the signal line in after hours activity. The bullish breakout in January wasn't strong enough to pull up the ADX trend strength index above a 20 yet, and I suspected that the +DI would bounce off the -DI as a support in the couple of days leading up into earnings to have a sharp breakout above the 50 and 200 day moving averages as resistance is being tested and the bulls will win have won out on earnings in pre-market. RSI appears to be testing a resistance near 50 as well, but momentum is beginning to look positive and may remain so if the breakout settles into a strong trend channel upward. Money flow is positive, and it looks like the few bears that bet on a bad earnings call are going to get squeezed out fairly quickly for some easy bull trap bait. Volume began to rise right before the call, and will break out hard tomorrow on market open, too.
Welcome to CostCo, I love you!
Trade active:
More than 7.5% up in the short term. I'm riding a pretty tight 1.5x over the past 4 day ATR for my stops relaxing the multiplier up to 2x and eventually up to a 2.5 over a 9-day ATR.