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In SlingShot Trader we took profits on a bullish trade on Wal-Mart Stores Inc (NYSE:WMT) last week, and we’re jumping back into a bullish trade on the stock looking for more of the same.
According to Mastercard SpendingPulse, retail sales in the U.S. rose at their fastest pace since 2011 this holiday season. Wal-Mart has positioned itself well to take advantage of this increase in spending with its improved online presence and its dominant brick-and-mortar presence (which tends to catch all of the last-minute shoppers who don’t have the luxury of waiting for shipping). We expect the company to report robust sales and margins for the holiday shopping season.
WMT shot higher in mid-November following the company’s earnings announcement, but the stock has been consolidating in an “ascending triangle” with a horizontal resistance level at $100. With the recent support bounce at $97.50, we wouldn’t be surprised to see WMT break up through $100 in the coming weeks.
‘Buy to open’ the WMT February (2018) 100 Call (WMT180216C00100000) for a maximum price of $2.40.
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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 with our $19 for 2 months Holiday Savings Special by clicking here.