COST looks good as consumer confidence runs high
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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.
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Article printed from InvestorPlace Media, https://investorplace.com/2017/09/trade-day-costco-wholesale-corporation-cost-2/.
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