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Trends & Analysis
News
Costco’s shares slide despite upbeat results
News
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Can Walmart protect you from the September swoon?
News
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Could Microsoft excel?
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Crude oil burns brighter amid supply concerns

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Asset Watch

Can Walmart protect you from the September swoon?

 

Thursday, September 22 2022

With seasonality firmly in the bearish camp, Sep. 20-30 is often the worst time to own S&P 500 stocks. Interest rates have also risen rapidly in recent days, making the bond market sell-off situation, worse. Plus, as the FOMC is poised to raise interest rates on Sep. 21, Chairman Jerome Powell’s hawkish or dovish disposition could go a long way in shaping short-term sentiment.
Trouble seemingly at every corner, could Walmart offer a solid risk-reward proposition regardless of how the drama unfolds?

Walmart closed above its rising support line drawn from the June lows on Sep. 20, so its three-month uptrend remains in place. Its August intraday high of $142.72 did not fill the gap from the May 17 earnings debacle. And as most gaps fill, Walmart should retrace those losses at some point. A move above $146 also aligns near Walmart’s November and December 2021 highs, as well as its January and March 2022 highs.

The playbook is as follows: if the S&P 500’s negativity persists, Walmart could outperform by holding or remaining close to its rising support line. On the other hand, if Powell’s press conference spurs bullish optimism, there is plenty of upside available for Walmart to fill its May gap.

Is Walmart the perfect place to hide, or should you wait until October to make your move?


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