Adding to Walmart (WMT) ~ market folly

Thursday, June 19, 2008

Adding to Walmart (WMT)

I like the looks of Walmart (WMT) here on this pullback. I added my initial position on the pullback to around $55 on the 50 day moving average just a few weeks back. It's run up and then now its back down testing the 50day ma support again, so I'm adding. I cannot stress enough how this is literally the only consumer name I'm playing (could make an argument for MA & V though). When times get rough, people flock to the cheapest of the cheap, and that's WMT. In my first post regarding WMT i mentioned that their stores are PACKED even at 11pm on a friday night when my friends and I stopped in to pick up some drinks.

If you're going to be long the consumer in any way shape or form, this is the play. The chart is perfectly uptrending, using the 50 day moving average as support; it really speaks for itself, just have a look. Buy WMT on the dips as the tight consumer only gets tighter. This can give your portfolio some good diversification away from energy, tech, and commodities (ie: the things that have been working in this market).

Long WMT (have half my position now & will add more on future dips)


Mark said...

CNBC and government has assured us there will be a 2nd half recovery, commencing in 2 weeks

This WMT position will be summarily destroyed at that point.

Never bet against the Fed!!! Hello?