"COST is on a pullback and defensive plays are key going forward." Bryan Bottarelli, Head Trade Tactician, Monument Traders Alliance Editor's Note: Back in May, legendary investor JC Parets warned our readers to IGNORE the mainstream's market crash narrative. Since then, the S&P has reached new all-time highs, and the 1% who listened to JC took advantage. Now, he's just detected the next opportunity to target up to 2000%+ returns over the next few weeks. It's part of his "zero hour" briefing, and you're invited to join him live on Wednesday, Oct. 8 at 2 p.m. ET. Don't miss the next pivot point in the markets. Click here to sign up today. Ryan Fitzwater, Publisher When it comes to trading in October after a rate cut, the numbers don't lie. Dating back to 1973, the S&P has averaged a -1.1% return 3 months after the first rate cut. So going forward, I'm taking a more defensive approach. One defensive play I'm watching right now is Costco (COST). As you'll see in the chart below, shares of COST dipped 1% despite a recent fourth-quarter earnings beat and revenue topping Wall Street estimates. Despite the modest dip, I believe we're in the buy zone for COST. Rate cuts have been historically good for consumer staples like COST – a company that benefits from a loyal following that's consistently growing its membership count. Now, as COST hits a key $900 support level, I'm looking for a bounce. |
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