Wal-Mart has lagged the market ( S&P500
) and could be about to play "catch-up" since it has fallen into a pattern that implies that sellers have been blowing out of their long position and the psychology around the shares should be nearly completely bearish
. The persistent lower-lows and smaller bounces puts bullish
market participants into a daze of disappointment and encourages bears and short-sellers to put on their biggest positions.
It looks like WMT
is due for a "squeeze" rally to return it to its last 3-month
high, or just to the highest range of the last rally high. Either way, outright long WMT
or PAIRED with a short in the S&P500
), is a good way to go. Risk is roughly 3% (using 1% ATR and risking 3 x's a typical ATR of 1%).
Tim 7/2/2014 10:11AM EST 75.69 last +0.41