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andrewgaudette008
Feb 29, 2024 3:34 PM

Stochastic Divergence and Walton Family Selling  Short

Walmart Inc.NYSE

Description

A classic divergence on the daily stochastic mixed with insider selling ($4.5 billion) equals a possible local top. That it. That's the thesis. Keep it simple.

Using Jan 25 Puts @ $61.67 for $4.25 a contract. This is very cheap. A run of the mill 10% correction yields a 100% gain at expiration. Hopefully much more If the divergence plays out and this is a local top!

Comment

Correction: 1.5 Billion sales

Comment

Still in this. The divergence is still there to my surprise and the pa today looks promising.

Comment

Sold out for +22%. Its looking a little oversold now and the stochastic has a bullish cross. Its not far from the 34 and 50 day MA as well. If price gets below the 34 and 50 I'll look to reenter

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I know it shows red so far above but I added on that mini double top

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need above 61.55 for a long position. looking bullish now after a period of sideways consolidation. Today could be a fake out so ill look to short below 58.6

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Looks like a short again. That 48 EMA needs to be taken out IMO before entering. worth a small position down to it if you must short

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I'm short again. Using weekly puts this time. Busted trade with an hourly close above the hourly period 48 ema

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busted. closed flat after doubling yesterday >:(
Comments
chinaik
I'm thinking shorting to 58.60
andrewgaudette008
@chinaik, Watch out for the 50 day ma support. WMT looking bearish on the 4hr chart but not there yet on the daily. I would like to see a bearish cross on the stochastic first. But if I was short, the previous earnings anchored vwap or the weekly high at 60.08 as my stop.
chinaik
@andrewgaudette008 luckily didn't short it yet, instead bought call.. closed too early. still profit is profit.
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