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Walmart Again

On Monday I did a blog on buying this week's Call options on Walmart. Today is now Thursday and there was a big crash in the markets yesterday. For example, Tesla had an insane selloff. Here is what happened to it. Today it is slightly rebounding as are so many other stocks. Thursdays however as oftened mentioned are not a good time to be purchasing one day options on stocks that expire the next day. So how is any of this revelant to Walmart's trading today? Well, there was a whole bunch other stocks that got knocked yesterday that might now rebound back up again together. Look at the chart below of Walmart and see how it was off a couple of dollars yesterday. Could you buy in now and get out later in the day? Fantasy thinking, one might say. Could it sneak up even one dollar? Now this. The stock mid morning is now merely trading sideways. Now look at this, the 93 series of Calls. (On Monday we were looking at the 94 series of Calls). At 10:22 a.m. the stock is up six cents...
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A Santa Clause Rally in Boeing And Caterpillar And Others

It happened in the last thirty days.
Caterpillar was up $2.70 on the week and Boeing was up $10.83. These are both thirty day charts and as you can see both stocks have had huge runs.
So what next? Maybe it's time to splash some cold water on things. Here is a not so whimsical weekend report on Boeing.
Now look at how these three auto have done over the last run. Another Santa Clause rally.
All this keeps going. Look at Fedex, Costco and Home Depot over the last month.
So now what? Is the party soon coming to an end? Well here is the thing. These rallies are not exclusive to anyone stock. In a way that's kind of a bad thing. Each one of these individual stocks are up for non specific reasonings. Look at Walmart and it's one month chart. It's down when everything else seems to be up.
Why isn't Costco affected by this news?
The current news is that higher interest rates are here to stay. Strong jobs reports makes big rate cuts unlikely in 2024 and we are living in a more inflation prone world. Earning reports this year in general are healthy. But wait, things can change. We are bordering on a recession. I hate to ask this question but I am going to. If Walmart is down why is Costco up? It's a puzzle. (90% of the U.S. population lives within ten miles of a Walmart and the company has a broad customer base). Wouldn't they have their ears to the ground as to what is happenening? I am not a big fan of Costco Puts because the stock has a history of out outperforming the markets. At some point however on a strong uptick they might be something to consider. When it falls it can fall big/

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