Breakout for Wal-Mart as Uptrend Confirmed

Sep 19th, 2008 – Comment

Wal-Mart has had a nice breakout in 2008 as consumers made their way to the discounter to get the most bangs out of their paychecks.


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Lou Schizas is an equities analyst, investor, entrepreneur, professor and television and radio personality – and a true believer in the happiness-inspiring powers of capitalism.


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Hello Mr. Lou,

Golden Cross in April

MACD signaled turn in November '07

On behalf of the members of my Muslim Investment Club in York Region we would like to congratulate you on the good advice you are giving in these most troubling of times. We feel that in this market Wal-Mart would be a relatively safe investment – would you agree?

Mohammed and friends

Hello All My Friends In the Muslim Investment Club,

Wal-Mart Stores, Inc., WMT NYSE has had a nice breakout in 2008 as consumers made their way to the discounter to get the most bangs out of their paychecks. Management has also put cost controls in place to further boost the bottom line.

The MACD signaled the turn in November of 2007, plus a golden cross in April of this year, confirmed the uptrend. But to your question it looks like the advance is peaking and may have gotten ahead of itself and is taking a breather. The last candlestick is a spinning top which indicates indecision by investors.

I think we need to watch and see the trading over the next two weeks. Just to see how we settle out of the bailouts and other financial problems to give a better indication of the short term trend. The holiday shopping season is forecast to be a dog which is a good thing for Wal-Mart because as consumers rethink their spending they will turn to the discount king for everyday low prices. All other retailers beware.

Happy Capitalism!

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