Walmart CEO last month forecast an inflation tick up, now he's forecasting a retail slow down. So far his forecasts a 1 for 1. Inflation has picked up as confirmed by the Federal Reserve it self. So how can we profit?
Source: Wal Mart CEO: "Shoppers Are Running Out Of Money"; There Is "No Sign Of A Recovery"
Mike Duke CEO Extract..
Wal-Mart shoppers, many of whom live paycheck to paycheck, typically shop in bulk at the beginning of the month when their paychecks come in.
Lately, they're "running out of money" at a faster clip, he said.
"Purchases are really dropping off by the end of the month even more than last year," Duke said. "This end-of-month [purchases] cycle is growing to be a concern.
How can we profit from this?
Chart reading of WMT suggest.
- Massive cycle roll over expected in the next 12 months
- Price has pulled back 32% from A to B
- Bearish Gann Angle 8x1 is in control.
- Bullish Gann Angle 4x1 is acting as support.
- A move down to $50 is more likely than a move up to $60
- We expect the overall market to rollover the next two quarters, and WMT will follow.
The USD dollar falling is NOT good for low margin stores like Walmart, inflation on source product and shrinking disposable customer incomes is a mix they do not wish for.
If you expect prices to fall 5% to 10% in the next 6 to 12 months, you can multiply these gains 10 fold by using stock options. Buying puts, or selling calls or an option spread. Consult your broker.
