COST $-2,419.30 (-1.54%)

Posted by: L on Oct 19, 2017 12:42pm



Summary

Symbol
Qty
Cost
Avg Buy
Avg Sell
Return
Return $
Return %
R
Stop
Result
COST
-1000
-$159,786.30
$159.79
$157.37
-$2.42
-$2,419.30
-1.54%
-0.31
$0.00
Loss


History

Action
Date
Shares
$
Value
Com $
Risk
Buy
10/12/2017 07:04:09 AM
1000
$157.37
$157,367.00
$10.00
Buy
10/13/2017 03:57:34 PM
1000
$159.79
$159,786.30
$10.00


Notes

Costco reminds me of NKE. Earnings were great but because of certain concerns (Adidas, not enough sales, not enough future sales, online sales not high enough, etc.), it kept going down even though every quarter yielded amazing earnings results. For Costco, the narrative is Amazon going into groceries with better delivery services and already a robust online service. In addition, more people are getting Amazon Prime membership in addition to Costco membership. For this reason, I think Costco is a good short opportunity. I made a mistake during the short-squeeze. I thought the squeeze was a rebound but I might be wrong. I shorted Costco again this time with the view that it will go down further to the golden level. I had a minor level drawn at $157.62 (blue) and it appears to be a resistance level. We shall see in the next few days. It has already tested this level and broken through but then went back below it and saw resistance on the 1 min & 5 min charts. On the daily 6 month, it looks like a short squeeze (institutional traders taking profit) but it's unclear at this time. Trade is invalidated if it goes above $160 or if the intra-day charts show a bounce off of the minor level.

Oct 13/Fri @ 11:43am: my trade idea was wrong. I am now looking to exit the trade. Will probably wait until after lunch hours to see if the price will drop enough for me to exit with a smaller loss (or so I hope).

I should've also added a short stop for COST.



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