Ever since this summer when AMZN kicked the tar out of COST and WMT for buying toney retail space owner WFM, I have been waiting for the next victim. Meal maker BLUE got thrashed but that was kind of a David and Goliath battle anyway. WBA is no market pansy but rather a real heavyweight globally in prescription drugs. It did not matter much as the leader premium got kicked out of WBA in a hurry.
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Not much to write about today. The biggest news is that the NFL might review its “take a knee” policy and that as you know would overshadow any economic news. I did find headlines about the Chinese government taking an “active” role in the big Chinese internet companies and I am thinking long term that cannot be good. BABA and BIDU were both done a bit after torrid runs. My story for today is WMT because it broke the 3 day rule I just wrote about and what the heck I own it too.
The 3 day rule
No, I did not invent the 3 day rule, but I like it. In the old days a stock that went up 3 days in a row was susceptible to a pullback. The 90’s put the rule on hold and QE messed with it as well. Basically it is the old tape readers logic that 3 days in one direction is not sustainable. With equity prices it is not a bad swing run timing thing, but it works very well for volatility, QE be damned.
Not very long ago NVDA was a $30 stock. Now that the world has caught on to the many uses of GPU’s NVDA is a $190 stock. Citron hated it at $100 and that was $90 ago. With earnings coming up the MOMO crowd will not be able to let NVDA go so I think there is reasonable support for the name. The question is if I can make some upside cheap enough.