Another stock. COST has dropped $65 from its high. Tomorrow is their earning announcement. I am buying for a few perfect pop.
There are stocks that actually move 10% up. They aren’t the ones currently dropping like a rock. That’s an indication that people don’t want the stock. If you’re bottom fishing for big movers, I wish you all the luck in the world. It can happen, but the probability play is so low. And you might end up holding for a really long time. look for stocks making 52 wk highs while the market is dropping. People actually want those stocks. I understand you didn’t ask for this feedback, but PFE isn’t going anywhere anytime soon. Neither is Costco. You have to go out of your way to find stocks this badly underperforming the s&p. If you really want to, TRHC, CHRS.. Not that healthcare is on fire (it’s not), but if someone likes to fish there, look at LH or SEM. If prices rising means more demand than supply, and prices falling means more supply than demand, in healthcare, compare LH to PFE. Then ask the question - which company do people want to own more of? The answer also doesn’t change in 15 minutes. It changes over months, maybe even years. That is unless an unexpected announcement or crisis happens. If PFE has to be something in your position open list, I’d go long LH and shot PFE. Take the money flowing out of PFE and turn it around and put it into LH. do the same for retailers.. first thing I’d ask- are retailers doing well? No. They are a laggard. Most sectors are doing better. Ok, well, if you buy the company everyone wants in retail, that might be ok. It’s not COST though. None of them are really doing well. I’d fish elsewhere. Think about that. You’re buying a dog, within a dog. Could it turn around? Sure. I wouldn’t hold my breath though. And I wouldn’t fool myself into thinking I got me an arbitrage when all you did was buy something no one wants. or, if this is your bag, you could snatch up some gold right now. It’s dropped a fair amount and it seems like no one wants to touch that either. I wish you all the best.