Thinking about shopping at WalMart (WMT)? Here is my take. (March 15, 2016)
WMT
I want to look at Wal-Mart ( NYSE:WMT ) today and here’s why: The stock has essentially been marching higher in a really nice orderly fashion. I’ve been talking about this stock for months. It’s like the joke is, “Dude, do you think it’s going to zero?” It’s Wal-Mart ( NYSE:WMT ). They got crushed for quite a while, but since this bottom here, I would actually look at this as the bottom, even though the stock went lower. The reason I’m saying that is because this was a huge, massive capitulation, massive volume on the dump, and since November it’s been drifting higher.
Well looks what’s been happening just over the last few weeks: The stock traded above the 200-day moving average and is STAYING above the 200-day moving average. It didn’t do that before. It rallied up here, couldn’t make it. So now I’m looking at this as, this is still kind of in the buy zone. If the stock starts falling back below, we’ll say at 65.00, something like that, back below here, then you don’t want to be in this stock. But right now I look at ANY little pullback back to the 50-day moving average as a buying opportunity. Frankly I would be starting to build a position right here. It’s always nicer to build a position on a pullback, it’s the old buy low sell high thing. But I think, ultimately, this is going higher. So you can take a little bit of stock right now. Or hopefully, Jumpin’ Janet and the Jelly Beans, tomorrow, will come out with something stupid like they usually do. If the market gets a pullback then you can maybe get this stock closer to $66.00 or 666, which might even be better.
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