COST trade ideas
Close Up Of Previous Idea and LevelsCOST Ideas are attached, had opportunities to get in and ride this ride on up while everyone else thought it had ran too far too fast. Now sitting at an inner resistance area of its lifetime channel. Break above and hold here then opens up 370's-380's next, knocking on the door of 400. Make sure you look at this chart through the correct lens, and don't just take anyone's word for it that its "overbought" or "exhausted" or "parabolic" and has to come down. It isn't and it doesn't. Congrats if you've been in here a while, or if you bought just a few weeks ago. For now just watch price action around this trend line, and trade accordingly. Happy hunting and GLTA!!
Like I Said, Think Again...As mentioned in previous idea about COST (linked) if you think this has run too far too fast, think again. As mentioned then, the critical level is this inner resistance near 300, which if broken can open the floodgates for COST. If it closes 305 convincingly, this thing can feasibly hit 400 without much trouble. Just because a chart looks straight up in "Auto" charting mode doesn't mean it's overextended. Take another look from the right perspective and things become much clearer. Congrats if you bought then. Happy hunting and GLTA!!
COSTCO hits all time high again.Just like they Big Tech Companies Costco was quick to harness the power of a subscription based business, membership is cheap but the recurring income adds greatly to the bottom line.
As of today Costco opened its first store in China and such was the popularity it had to temporarily close due to overcrowding concerns, a fantastic problem to have.
Costco is somewhat resilient to recession, the demand for bulk value grocery increases as times get tough.
Costco retracement and bounceLooks like it retraced a small amount and will continue to bounce upward towards original Fib price target $289. RSI had sharp downward adjustment and has room to increase along with MACD. Looks setup to at least retest previous highs as resistance and go towards $289.
I guess we'll go down for today on $COSTI guess we'll go down for today on $COST to 278 at least to make more support to run up again
Think $COST has run too far? Think again...NASDAQ:COST It really pays to understand the "log" button on your chart and when to use it. Because looking at COST monthly chart in this way shows a very clearly defined channel and midpoint line. So, instead of looking like an unchartable stock that looks as if it has to be out of gas, it becomes much clearer that in fact, it could have much further to go. This is further evidenced by the Stochastic Indicator, which is nowhere near a point of exhaustion. So COST will likely rise up to the 297-300 mark which is resistance in this smaller, inner channel currently being ridden. Then comes the decision point, and if COST is able to break past 300 convincingly, it is very possible--even likely--that it could be sitting 370-380 by the end of 2019 without too much fuss. Beautiful, strong chart here. Below is an example of what this exact same chart and trend lines look like if you keep the monthly chart in linear mode. Good luck charting that thing. Happy hunting, hope we all make it out alive!!
Congrats to Subscribers: Costco Up Over 26% After Alert!It is very easy to read price action if you have a reference point. These support/resistance lines are there to help you read where the buyers and sellers are likely to make a stand.
MasterChartsTrading Price Action Indicators show good price levels to enter or exit a trade.
The Blue indicator line serves as a Bullish Trend setter.
If your instrument closes above the Blue line, we think about going Long (buying).
For commodities and Forex, when your trading instrument closes below the Red line, we think about Shorting (selling).
For Stocks, I prefer to use the Yellow line as my Bearish Trend setter (on Daily charts ).
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COST: All indicators are goThis is at all time high and 288 is what I see can happen in a month or two. Sales numbers are due tomorrow and Amazon Prime day is coming too. Let's see. Look at ADX...big time bullish
Added a good size call (Aug 23rd).
Cost overbought?Ok I don't know but Cost is up so much recently and its so overvalue
Do you think it is going back to the trend line?
Tell me in the comment xd
COSTCOAll time highs have been broken, MN & WK is trending up. We have 2 nested demand zones on daily for longs 1 at trend line break and 1 at the extreme.
$COST Everyone loves Costco, but not at $240 & 30 P/EIts is not uncommon for NASDAQ:COST to fall on a good earnings report and it always bounces back within a few months, longs are probably a bit apprehensive going into earnings as selling has been quite intense this week. When consulting they technicals the stock has actually been showing bearish divergences since early May, as the price climbed the RSI, MACD and CMF have all steadily dropped.
Sentiment in the market is poor, but Costco is one of those companies immune to certain economics that affect others, consumers always want good value and Costco offers that, in good and bad times. The subscription model also provides recurring guaranteed income, which investors love but at a 30 P/E ratio it getting a little expensive
The best policy is to wait and see on this, because if the breakout fails and support breaks a drop to $220 is very possible to fill that gap
THE WEEK AHEAD: COST EARNINGS; EEM, OIH, XOP, TSLAEARNINGS
COST (46/25) announces earnings on Thursday after market close, so look to put on a play in the waning hours of the regular New York session.
Pictured here is an iron condor in the July (53 days) expiry with the short options at their respective 20 delta strikes. Preliminarily, it's paying 1.55 at the mid price, a smidge shy of one-third the width of the wings, with break evens wide of the expected move at 228.45/266.55 and delta/theta metrics of -1.41/1.93, and a buying power effect of 3.45.
For those who don't like waiting as long for their candy, the June monthly (28 days) iron condor with the shorties set up nearest the 20 delta -- the 230/235/260/265 is paying spot on one-third the width of 1.68 with break evens at 233.32/261.68, delta/theta metrics of -1.65/3.80, and a buying power effect of 3.32.
As of Friday close, the May 31st (4 days) to June volatility contraction is from 34.7% to 24.7% or about 28.8%.
Look to manage intratrade by rolling the untested side toward current price on approaching worthless with a 50% max take profit target.
BROAD MARKET
Majors are at the lower end of their 52-week ranges with background implied in QQQ and IWM in the low 20's; SPY and EFA, in the teens:
EEM (32/21)
QQQ (27/21)
IWM (28/20)
SPY (27/16)
EFA (23/16)
The EEM July 19th 36/40/40/44 iron fly is paying 25% of the width of the longs (8-wide) at 2.05 and break evens right at the expected move of 37.95/42.05, delta/theta metrics of -9.01/1.09, with a buying power effect of 1.95. Look to take profit at 25% max, as you would with a short straddle. Generally, these can't be effectively managed intratrade to delta balance without adding setup, so any trade management has to occur toward the back end of the cycle (i.e., taking untested off at approaching worthless, rolling out tested, selling untested side against in new cycle, assuming that the roll out of the tested and the sell against can be done for a net credit).
QQQ is paying slightly more than one-third the width of the wings for the short option strikes nearest the 20's -- the 163/166/188/191: 1.16 credit, break evens at 164.84/189.16, delta/theta metrics of -3.55/1.55, and a buying power effect of 1.84. Manage intratrade by rolling in untested on approaching worthless toward current price; 50% max take profit.
A similarly delta'd IWM setup is paying 1.06: the July 19th 137/141/159/162, with break evens of 139.94/160.06, delta/theta metrics of -1.82/1.34, and a buying power effect of 1.94. 50% max take profit. Manage intratrade by rolling in untested on approaching worthless toward current price; 50% max take profit.
SECTOR EXCHANGE-TRADED FUNDS
Top 5 By Rank: GDXJ (45/28); ASHR (42/28); OIH (40/37); XLB (41/31); EEM (32/21).
The only short straddle paying in excess of 10% of the value of the stock is OIH with the July 19th 14 short straddle paying 1.51 versus 13.81 spot. The at-the-money short straddle in the closely correlated XOP (30/34), the July 19th 27, is also paying > 10%: 2.82 versus 27.12 spot. Manage intratrade by rolling in untested side on approaching worthless to cut net delta in half without inverting to a width greater than credits received; 25% max take profit.
SINGLE NAME WITH EARNINGS IN THE REAR VIEW
TSLA (62/83). The July cycle iron condor set up nearest the 20's -- the 150/155/235/240 is paying 1.78 at the mid, -31/1.65 delta/theta. Markets are wide, so look to do some price discovery if you want to get in on a play. Manage intratrade by rolling in untested on approaching worthless toward current price; 50% max take profit.
COST has broke through supportCOST looks pretty solid above this support now. Should have room to run for a 2R gain.
Costco ASCENDING TRIANGLEIncreasing lows, equal highs, at least two swings passed = bullish surge towards $254
Also: Kumo Cloud indicators gave us a strong bullish signal on May 16 and the cloud is showing strong support
Good time to buy Costco (COST)Weak buy signal with the red+blue cross underneath the Kumo, and lagging strand is showing consolidation. This typically means "wait for more information" but we are approaching a strong support in the trend channel and momentum is pointing towards a reversal.
I'd keep a stop loss around the 238 level, but even if we unload at 247 that's a solid 3:1 risk to reward ratio.
COST - ABC Completed, Time to retrace? You can see the negative divergence on this chart. Stock been pumping up and momentum is vanishing.
I am shorting from up here, puts 2 weeks out.
