To receive further updates on this Costco Wholesale Corporation (NASDAQ:COST) trade as well as an alert when it’s time to take profits, sign up for a risk-free trial of SlingShot Trader today.
Most of the big concerns Wall Street has been fretting about seem to have resolved themselves for the time being. Reversals on the CBOE Volatility Index (INDEXCBOE:VIX) and the CBOE Interest Rate 10 Year T Note (INDEXCBOE:TNX) indicate that traders are starting to rotate out of some of the more conservative positions in their portfolios, freeing up capital to invest in U.S. equities.
So which equities are likely to attract this new influx of capital?
Several upgrades across the retail sector triggered some interesting breakout signals. Costco Wholesale Corporation (NASDAQ:COST) just completed a “double bottom” breakout with attractive upside potential. Consumer confidence is running very high, which is likely good for retail, some of which has been over-sold following the Amazon.com, Inc. (NASDAQ:AMZN)/Whole Foods Market, Inc. (NASDAQ:WFM) acquisition. We recommend an entry here but will be watching the June-gap price level closely for signs of resistance as the breakout continues.
‘Buy to open’ the COST October 165 Calls (COST171020C00165000) for a maximum price of $3.40.
Follow our Facebook page to receive each Trade of the Day direct to your News Feed — and join the conversation.
You can learn more about identifying price patterns and using them to project how far you think a stock is going to move in our Advanced Technical Analysis Program.
InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next SlingShot Trader trade and get 1 free month today by clicking here.
Most recently, John and Wade are co-options strategists of Turbo Trader Live — a live, interactive trading room service that runs two hours every trading day the market is open. Turbo Trader Live focuses on long call and put options, as well as long and short vertical spread strategies. Find out how to get in on the live trading action and start making real profits by clicking here.
