Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Wednesday, the 6th of
Could Costco (NASDAQ:COST) be the new hot stock for investors? Facebook (NASDAQ:FB) still looks good and has all three Trade Triangles positive, suggesting that this stock is in strong hands. Yesterday, Tesla's (NASDAQ:TSLA) earnings created a short-circuit in many investors' minds, causing the stock to drop 14% today. In addition to these stocks, I'll also be covering the major indices, gold, which gave a short-term buy signal today, crude oil and the Dollar.
COST - The New Hot Stock?
Costco (NASDAQ:COST) is a classic membership model, as it makes most of its money from its annual memberships. Costco works on razor-thin margins and is more interested in getting more members to buy more things from them. Technically, this stock looks very good and seems poised to move to the $130 level. It's not sexy like some of the tech stocks and that's the point, this is everyday stuff that Americans buy and need at bargain prices.
I Still Like Facebook
I still like Facebook (NASDAQ:FB) and with three green Trade Triangles in place, what is there not to like? It would appear that we are setting up a positive divergence for Facebook and will go through that in more detail in today's video.
Tesla Blows A Fuse
Despite today's sharp downward move of over 14%, the long-term monthly Trade Triangle remains positive for Tesla (NASDAQ:TSLA). I have been on the sidelines based on the intermediate-term weekly Trade Triangle and see no reason to try and pick a bottom in this market. Longer term I still believe Tesla will go higher, but for now it's going to have to have a mechanical rebuild.
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Have a great trading day,
Adam appears frequently on the following financial news channels as a guest expert. Click on any cable logo to watch Adam's latest appearance.