Where’s the Blue Light Special? No, it’s not K-Mart. It’s Wal-Mart (WMT) (August 01, 2016)
WMT
We’re in a volatility squeeze on Wal-Mart ( NYSE:WMT ). If you zoom out here, like I’ve just done, you’ll see a couple things. First of all, not good to own Wal-Mart ( NYSE:WMT ). Next, pretty good to own Wal-Mart ( NYSE:WMT ). This is not a super fast mover. They report earnings in 17 days; the dividend is okay. The reason that I’m pointing out this stock is because it is IN a volatility squeeze. So I would do this: Draw a line down there, you can kind of draw one there. You can see how really, really tight these Bollinger Bands are. I’m looking at the high, we’ll call it 74.00. If I’m you I’m going to set an alert, 73.78. I want to take another look at this, if this stock trades up to 74.00, I’ll say 74.10. The reason is because this stock just kind of has a way of moving higher when it’s in these squeezes. You can see back here it ultimately moved higher, and this is really, really tight. So lets go with 74.10.
Members you will be getting an email with this specific video if this stock hits 74.10. And if it does I will say this, watch it, don’t buy it at 74.10, it’s not a buy signal, that’s not it. But you want to watch and make sure that it is ultimately going to start trading above 74.35. You can say, “Well why didn’t you set the alert at 74.35?” The reason is, because I want to give you fair warning, that’s the way you want to be trading. You don’t necessarily set price alerts right at a level where you would want to buy. You want to set a price alert so that it’s basically your trading assistant that kind of knocks on your shoulder and says, “By the way, Wal-Mart ( NYSE:WMT ) is getting close to breaking out. What do you want to do?” That’s what these alerts are for. If this stock starts trading to new highs, I think you definitely want to stay long. What it does after they report earnings, I don’t know, we’ll look at it again a little bit before that time. But for now, the stock is working, let it work.
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