Here’s your trade on $WSM – March 17, 2021
WSM
Let’s take care of Williams-Sonoma ( NYSE: WSM ) here. I really like this company, I like the stores. I walk in there, I feel like I am a cook, though I don’t think they have the George Foreman grill, which still is my utensil of choice; either that or a can opener and I eat stuff right out of the can.
The bottom line is, this stock, this company is doing really well. And the reason it is up so much is, guess what? They announced earnings, they reported earnings. They are buying back shares, which is always a good thing. And when money is free, isn’t this the thing that you do? As I speak this stock is going up from here. In fact, do you know what I am going to do? Just because I am feeling saucy right now I am going to go ahead and buy some, alright, 156.00.
I think this stock goes higher. The issue is, just as playing any other stock over earnings, the first move brings in all of the big momentum chasers, kind of like me. And then at some point, the stock starts pulling back and that is when you will get the real entry. And so as you look at the stock, it’s up so much. But again, they are buying back shares and they are also increasing their dividend. They don’t pay much of a dividend to begin with, they bumped it up to $0.59 a share. Not bad, not great, whatever, but I think the stock goes higher.
What I would suggest doing is, you recognize that 150.00 was this last high here, it has eclipsed it now. But this is in after-hours, this is in after-hours trading. If you look at it in just the regular hours this is where the stock was, so this is all after-hours action. What you want to see this do tomorrow is, open up above 150.00 and stay there. If it starts to fall back, like coming down here then this is a fakeout and we have seen this type of stuff before. In fact, you have seen a similar thing just back here.
And so I wouldn’t mess around with this stock. It is either going to reward you right away or it’s not. If it doesn’t, don’t sit there and wait for it to be nice to you. It is either going to be one way or another. It is either going to run above 150.00 or it’s not. If you buy it and it’s, or not, then get the heck out. You don’t want to be sitting there riding this thing down 15 percent hoping that it bounces off the 50-day moving average.
Free Chart