Walmart (WMT) Stock Technical Analysis and US FED Fundamentals
Technical Analysis of WMT:
(1) RSI oversold
(2) Gap window filled
(3) Support right at the gap
(4) Fibonacci support at the gap
(5) MACD extremes
(6) MACD Histogram Diverging
(7) eDuRd strategy 2
(8) Slow stochastics came down into oversold territory
(9) I like 90 and I like 84.
Technical Conclusion:
Long WMT
Fundamental:
Today is December 17, 2019. The US Fed comes out with an interest rate decision on December 19, 2018.
I believe that the Fed will raise rates yet be neutral. Given that Powell switch is view from being hawkish to dovish earlier in December 2018, which was a shock to the markets, it is possible that while raising rates that the FED can also be or somewhat dovish. If so, the US FED will change their "Economic Projections." This change in their projections will signal to investors that there will be lower expectations of rate hikes going into 2019.
Aside from this, and given all of the evidence we have at hand regarding the US economy (without going into too much detail about it), there is no reason to believe that there should be another 2008 financial crisis or another 2000 bust in the year 2018 - 2019.
Fundamental Conclusion:
Actions speak louder than words! If we can trust the US Fed's decisions without too much speculation and doubt, a FED raising rates could signify their belief in a strong economy. A FED raising rates while being neutral or dovish could mean:
"This is just enough and were we want to be for a while. Let's play it by ear."
Further thoughts and words:
Does that mean that WMT will go up? No! I don't know why I chose to write about the US Fed with this stock pick regarding WMT, but I did. A rising stock market could induce buyers to come back into WMT's stock and other stocks, such as PGR, INTC, UNH, NSP, INTU
(1) RSI oversold
(2) Gap window filled
(3) Support right at the gap
(4) Fibonacci support at the gap
(5) MACD extremes
(6) MACD Histogram Diverging
(7) eDuRd strategy 2
(8) Slow stochastics came down into oversold territory
(9) I like 90 and I like 84.
Technical Conclusion:
Long WMT
Fundamental:
Today is December 17, 2019. The US Fed comes out with an interest rate decision on December 19, 2018.
I believe that the Fed will raise rates yet be neutral. Given that Powell switch is view from being hawkish to dovish earlier in December 2018, which was a shock to the markets, it is possible that while raising rates that the FED can also be or somewhat dovish. If so, the US FED will change their "Economic Projections." This change in their projections will signal to investors that there will be lower expectations of rate hikes going into 2019.
Aside from this, and given all of the evidence we have at hand regarding the US economy (without going into too much detail about it), there is no reason to believe that there should be another 2008 financial crisis or another 2000 bust in the year 2018 - 2019.
Fundamental Conclusion:
Actions speak louder than words! If we can trust the US Fed's decisions without too much speculation and doubt, a FED raising rates could signify their belief in a strong economy. A FED raising rates while being neutral or dovish could mean:
"This is just enough and were we want to be for a while. Let's play it by ear."
Further thoughts and words:
Does that mean that WMT will go up? No! I don't know why I chose to write about the US Fed with this stock pick regarding WMT, but I did. A rising stock market could induce buyers to come back into WMT's stock and other stocks, such as PGR, INTC, UNH, NSP, INTU
Trade closed: target reached
Capturing the swings of the stock market & currency market. It's a dirty job and equity/currency traders must do it.
