Costco Earnings Report After Stock Market Close
Costco Stock Chart COST 5.30.19 Before Earnings
What to Expect from Costco (COST) Earnings Report Thursday (Q3 2019)
Costco (COST) is scheduled to release its Q3 fiscal 2019 financial results after the closing bell Thursday. Shares of COST have climb 18% this year to outpace its industry’s average climb as it continues to report strong e-commerce growth and comparable sales.
Costco, like many of its retail peers such as Target (TGT), Walmart (WMT), and Kroger (KR) , has rolled more robust digital and delivery offerings in order to fend off Amazon’s (AMZN) encroachment.
zacks.com/costco-cost-earnings-report-5-30-19
Costco Stock Gets a Downgrade at the Worst Possible Time
The leading U.S. warehouse club will deliver quarterly results this week. Expectations are running high given the strong comps momentum, but one analyst sees things differently.
With optimism percolating, it may have come as a surprise to see one Wall Street pro downgrade the stock on Wednesday, but one can also argue that it's probably the best time to shift into a new direction.
SPY ETF Chart 5.30.19
The SPY ETF is trapped.
Stuck between the 200 sma and the $280 level, which now comes in as major resistance. This price action sets up a lesson in trade management.
The way I'm reading the tape (7am Thursday morning) I see the next couple of days as a consolidation/pause. So that means I'm in cash flow mode. Not looking to build positions, not looking to hold trades longer.
When expectation for follow through is lower, we need to be diligent timing our entries, which usually means limit orders, stop limit, definitely not stop market. Get a good price or don't get filled.
Something else unique about the current tape is the type of trade you make. In a tight tape, trading breakouts or breakdowns leads to getting stopped out and frustrated. This is an advanced topic but one worth mentioning.
Trading Strategy
When timing matters, the correct play is waiting for a swing high, pull back to a moving average or full stochastics move to plus 100 (on a shorter time frame looking to short sell on the higher time frame.
Can find some earnings plays or stocks in the news that might have a unique catalyst that bucks this game plan, but in general, that's my play for the remainder of the week.
Why? In my experience, stocks and or the market generally does not penetrate major levels like the 200 SMA in one quick momentum move. The level needs to be “digested” before the next move.
I think we will see a test of that red down trend line before a move lower. That's my game plan, if it works out, awesome. If it doesn't I'll be in cash.
Pete
