Target (TGT) and The Monthly Trade Triangles

There's no doubt that Target (TGT) has been one of the hottest stocks of the year capping off the year with a move to a record high of $125.32, gaining over +12% on the day. Target has gained +67% on the year. The question is, have you been in on this historic run? As a MarketClub member, did you use the monthly Trade Triangles to enter the Target trade?

Today I'm going to use Target (TGT) as an example of how you can use the monthly Trade Triangles to capture long-term profits while making minimum trades and letting your money do the work for you.

There were a total of seven trades dating back to 2/23/2012, 5 winning trades and two losing trades resulting in a profit of +$74.43 a share.


Click on the image to enlarge

First, let's review the rules for trading the Monthly Trade Triangles.

Monthly Trade Triangles determine the overall long-term trend and the entry points and exit points.

The last Monthly Trade Triangle issued should be used to identify the overall trend. If the Monthly Trade Triangle is green, you will use it as an entry point into a long position. You would then use the next red Monthly Trade Triangle as your exit point.

Always trade with the trend and use appropriate money management. You can use the Chart Analysis Score in addition to other technical analysis studies to ensure the trend strength is suitable for trading.

Here's a quick summary of Target's earnings

For the second straight quarter, Target blew away conventional thinking on Wall Street. The company crushed analyst projections on sales, earnings, same-store sales, and gross profit margins. Online sales surged 31%. Target also once again meaningfully jacked up its full-year earnings guidance.

Target shares spiked 8% in the pre-market, indicating the stock will open at a record high.

Here's how Target's third-quarter stacked up against Wall Street estimates and its outlook shared 90 days ago:

Total sales: $18.7 billion vs. $18.22 billion estimate

Earnings per share: $1.36 vs. $1.19 estimate (Target guidance: $1.04 to $1.24 a share)

Same-store sales: 4.5% increase vs. 3.5% estimated increase (Target guidance: up 3.4%)

Gross profit margin: 29.8% vs. 29% estimate

Full-year earnings guidance: $6.25 to $6.45 vs. estimate $6.18 a share (Target prior guidance: $5.90 to $6.20 a share)

Every Success,
Jeremy Lutz
INO.com and MarketClub.com

4 thoughts on “Target (TGT) and The Monthly Trade Triangles

    1. Hi Bill,

      Thanks for the question. Our system doesn't predict targets but rather follows the trend until we detect that it's over by issuing a red monthly Trade Triangle. I encourage you to take a 30-day trial of MarketClub to see what it's all about.

      As a member, you'll have access to our Trade Triangle scan that will give you the newest buy signals and our email alert system that will notify you when stocks in your portfolio trigger monthly Trade Triangles.

      Best,
      Jeremy

    1. Hi Harshad,

      I encourage you to take a 30-day trial of MarketClub to see what it's all about.

      As a member, you'll have access to our Trade Triangle scan that will give you the newest buy signals and our email alert system that will notify you when stocks in your portfolio trigger monthly Trade Triangles.

      Best,
      Jeremy

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