Market Read®

  • Thursday, May 05 2016

This prediction has passed its maturity date!

This prediction was valid between February 26, 2013 and March 06, 2013. All information in this report is for reference only and should not be considered forward looking.

(NASDAQ: COST)

Costco Wholesale Corp.


Bullish

Costco Wholesale Corporation, together with its subsidiaries, operates membership warehouses. The company offers branded and private-label products in a range of merchandise categories. It provides dry and institutionally packaged foods; snack foods, candy, tobacco, alcoholic and nonalcoholic beverages, and cleaning and institutional supplies; appliances, electronics, health and beauty aids, hardware, and garden and patio; meat, bakery, deli, and produce; and apparel and small appliances. The company also operates gas stations, pharmacies, food courts, optical dispensing centers, photo processing centers, and hearing-aid centers; and engages in the travel business. In addition, it provides gold star (individual) and business membership services. As of October 29, 2015, it operated 690 warehouses, including 482 warehouses in the United States and Puerto Rico, 90 in Canada, 36 in Mexico, 27 in the United Kingdom, 23 in Japan, 12 in Korea, 11 in Taiwan, 7 in Australia, and 2 in Spain. Costco Wholesale Corporation also sells its products through online. The company was formerly known as Costco Companies, Inc. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington.

Investment Highlights

  • PATTERN SCAN predicts the price of COST expected to move up in the coming weeks based on the appearance of a 'Trend Line Break(3)' pattern. Specifically, a ACT EOD variant of Trend Line Break(3) has been detected. The target is $102.67. more
  • GATS predicts COST will move up in the coming weeks. Target is $106.10. more
  • SQUEEZETRIGGER predicts that when COST closes above $83.94, we expect a short squeeze to begin that could quickly drive the price of COST considerably higher.

Predictive Range January 04, 2013 - March 06, 2013

Anticipated price movement, between prediction date and target date, based on all market reads.
$101.34 - $104.39

How WealthMakers Market Reads Work:

WealthMakers Market Reads™ provide you with market performance predictions based on proprietary technologies, trading algorithms and data to help you make better, more informed investment decisions. Here's a quick review of our predictive technologies:

  • EARNINGS Most stock price histories show random or unpredictable movements around earnings reports. But some repeat the same pattern quarter after quarter, year after year. Earnings predicts probability, price move and length of move before and after all US stock earnings reports.
  • FRICTION FACTOR Friction Factor is based on the relationship between the price of a stock and the volume at which it's bought and sold. Normal and abnormal Friction factor patterns can help you time your buying and selling decisions for maximum earnings potential.
  • GATS The Global Automated Trading System (GATS) combines neural networks and genetic algorithms to reduce investment risks. GATS selects the highest probability trades in stocks, bonds, options, commodities, currencies and private equities, delivering precise, predictive and profitable data.
  • GROUP SECTOR Certain institutions can exert buying or selling pressure over an entire industry group, pushing prices higher. Group Sector identifies stocks that most closely match their group's movement and generate powerful group consensus trading signals to help you profit from the herd mentality.
  • PATTERN SCAN This technology automatically tracks "Trigger Events" that positively or negatively affect the value of a stock — or its perceived value among analysts — ranging from price fluctuations to natural disasters and political shifts. The results reveal patterns that can predict market movements.
  • EVENTS Events describe the current technical situation in your stock. It displays the technicals, trend conditions and seasonal factors and automatically discovers how that stock has performed in the trading days following the occurrences of the event or combination of events. This technology automatically scans using complex historical queries based on what event is taking place right now in the stock. It then displays the probability, expected return and number of trading days for the expected move.
  • RegSHO NAKED SHORTS SEC Regulation SHO mandates that if a clearing agent holds a fail-to-deliver position for 13 consecutive settlement days, it must purchase securities to close out its position, a.k.a. a forced cover. WealthMakers aggregates data from NYSE, AMEX, NASDAQ, OTCBB and PINKSHEETS to track stocks that are about to have forced covers.
  • SEASONALITY Seasonality analyzes more than 20 years of data to determine if stocks have a long or short seasonal bias, how many trading days the move is expected to last, the probability of that move and the percentage move the stock is expected to make based on the seasonal bias.
  • SQUEEZE TRIGGER Our proprietary database of more than 3,500,000,000 short sale transactions allows us to calculate the exact price at which the total short interest is short in each stock. Squeeze Trigger Alerts let you know exactly when a short squeeze will start and how to trade profitably.
  • VALUATION A stock's value is a function of its forecasted earnings per share and forecasted earnings growth, as well as profitability, interest and inflation rates. Valuation use these metrics to determine at what price a stock is undervalued or overvalued, so that you can make investment decisions accordingly.
  • INSIDER Significant stock sales or purchases by company "insiders" (officers or directors) can be a predictor of future price movements — up or down. The Insider strategy tracks these actions and correlates them with historical data to give you an investment edge.

Pattern Scan

 

Tracks "Trigger Events" that positively or negatively affect the value of a stock.

Costco Wholesale Corp. (NASDAQ: COST) is predicted to go up in coming weeks based on bullish technical trends that have appeared in the recent performance of the stock. COST has demonstrated Trend Line Break(3) strategy ACT EOD with a strength of 2.0/5. The higher the strength, the higher the probability of an accurate prediction.

  • The price of COST expected to move up in the coming weeks.
  • PatternScan has detected that a 'ACT EOD' pattern has appeared.
  • Specifically, a ACT EOD variant of Trend Line Break(3) has been detected.
  • This indicates a high probablity that COST will move up in the coming weeks.

GATS

 

Reduces risk by selecting the highest probability trades across market indices.

Costco Wholesale Corp. (NASDAQ: COST) is expected to go up as bullish signals have been generated by top equity trading strategies. This trading system is designed to identify high probability reversion to mean trading candidates. It looks to go long immediately following strong sell-offs, and goes short after sharp run ups. Its trades are short term and hone in on the irrational decisions of emotional traders around these extreme moves.

  • The price of COST expected to move up in the coming weeks.
  • Suggested stop level of 92.34 to limit potential trading losses.

Squeeze Trigger

 

We have a proprietary database of all trading in US stocks and maintain massive databases of short sale and naked short sale time and sales data, along with short squeeze SqueezeTrigger prices. We are the only firm that knows the exact price that a short squeeze will start in every US stock.

The Cumulative Squeeze Trigger price for COST is 83.94.

This means that when COST closes above $83.94, we expect a short squeeze to begin that could quickly drive the price of COST considerably higher.

Date Short Volume Short Value SqueezeTrigger
2016-01-31 3397783 530957618.5 156.2659
2015-12-31 6980409 1146132898.86 164.1928
2015-11-30 8341100 1325610985.72 158.9252
2015-10-31 3550434 526264144.78 148.2253
2015-09-30 7834656 1114073980.82 142.1982
2015-08-31 822712 119893161.59 145.7292
2015-07-31 6751419 962675383.223 142.5886
2015-06-30 5789807 806564696.614 139.3077
2015-05-31 6633201 957291628.558 144.3182
2015-04-30 482975 72949171.8675 151.0413
2015-03-31 437879 64644076.77 147.63
2015-02-28 1046034 151674930.0 145.0
2015-01-31 6308817 893014308.113 141.5502
2014-12-31 8208498 1161672382.91 141.5207
2014-11-30 5759206 793831101.501 137.8369
2014-10-31 6876979 869279028.912 126.4042
2014-09-30 7147645 895875102.832 125.3385
2014-08-31 6987274 833762059.869 119.3258
2014-07-31 8457790 993527287.731 117.4689
2014-06-30 1799757 210384394.272 116.896

Friction Factor

 

Friction Factor determines if there is normal or abnormal behavior in the price action of the stock when compared to the buying vs. selling trading statistics. It shows us how many more shares of buying than selling it takes to move a stock higher by 1 cent, or how many more shares of selling than buying it takes to drop a stock by 1 cent.
Here is how to understand Friction Factor:

  • If Friction Factor is positive, more buying than selling caused COST's price to rise
  • If Friction Factor is negative, more selling than buying caused COST's price to fall
  • If Friction Factor is 0, there was no discernable activity either way
  • If Friction Factor is abnormal, it means that more buying than selling caused the price to drop which is evidence of manipulative activity. In some cases more selling than buying can cause the price to increase. While this is rare, it must be noted as well. Friction Factor raw data.

Date Change Buy Vol Sell Vol Net Vol Friction
2016-01-14 1.06 693816 580856 112960 1065.660377
2016-01-13 -3.08 374682 668339 -293657 -953.4318182
2016-01-12 1.06 705573 643341 62232 587.0943396
2016-01-11 1.76 561559 701738 -140179 Bullish Bias
2016-01-08 -1.53 1024842 865776 159066 Bearish Bias
2016-01-07 -2.7 1234788 986882 247906 Bearish Bias
2016-01-06 -1.47 449620 624714 -175094 -1191.115646
2016-01-05 0.39 570314 625575 -55261 Bullish Bias
2016-01-04 -1.96 783565 578370 205195 Bearish Bias
2015-12-31 -1.21 508434 717179 -208745 -1725.165289
2015-12-30 0.05 292851 204086 88765 17753
2015-12-29 1.5 380612 275032 105580 703.8666667
2015-12-28 -0.59 335294 277427 57867 Bearish Bias
2015-12-24 0.04 118230 144434 -26204 Bullish Bias
2015-12-23 0.48 569535 439452 130083 2710.0625
2015-12-22 1.12 540876 363324 177552 1585.285714
2015-12-21 1.69 445821 394225 51596 305.3017751
2015-12-18 -2.98 575483 1275691 -700208 -2349.691275
2015-12-17 -0.99 357423 503630 -146207 -1476.838384
2015-12-16 0.44 602732 558182 44550 1012.5

General Results

 

Past success in predictions regarding all predictions on the WealthMakers platform.

Our prediction engine has a track record that is second to none. See for our results.

Read Type Avg Return Avg Maturity Days Hits Misses % Accurate
Insider 17.431 83.54 15101 671 95.75%
SqueezeTrigger 12.619 21.56 11073 789 93.35%
Valuation 14.484 26.96 4201 302 93.29%
Seasonality 7.297 15.19 58958 5423 91.58%
Group Correlation 7.203 14.99 10466 1276 89.13%
PatternScan 8.456 11.39 232624 34852 86.97%
Events 6.763 11.18 4661 731 86.44%
Earnings 8.497 10.32 25032 5031 83.27%
GATS 5.636 7.88 83668 17700 82.54%
Naked Shorts 13.714 10.99 2983 772 79.44%
Friction Factor 6.953 3.61 8488 2466 77.49%

About Wealthmakers

WealthMakers gives institutional and individual investors an exclusive advantage in making precise, predictive and profitable trading decisions. Our proprietary technologies — Earnings, Seasonality, Squeeze Trigger, Group Sector and GATS — apply artificial intelligence, proprietary algorithms, market data and research to help our clients realize exponential returns. Find out more at WealthMakers.com.

All material herein was prepared by WealthMakers, based upon information believed to be reliable. The information contained herein is not guaranteed by WealthMakers to be accurate, and should not be considered to be all-inclusive. The companies that are discussed in this opinion have not approved the statements made in this opinion. This opinion contains forward-looking statements that involve risks and uncertainties. This material is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. WealthMakers is not a registered investment advisor in the State of California. Please consult a broker before purchasing or selling any securities viewed on or mentioned herein. WealthMakers or its affiliates may receive compensation from independent third parties, or from the companies mentioned, for data provided in this report or related services. WealthMakers affiliates, officers, directors and employees do not own shares of the company mentioned in this report, but may from time to time buy/sell the shares discussed in this opinion and may profit from those trades. Market commentary provided by Thomas Ronk, a registered investment advisor and commodities trading advisor in California. WealthMakers will not advise as to when it decides to sell and does not and will not offer any opinion as to when others should sell; each investor must make that decision based on his or her judgment.

All Rights Reserved. Copyright 2011 WealthMakers

Overview
Last Price$151.71
52 Week Range$109.50 - $126.12
1 Month Range$114.51 - $118.64
Avg Daily Volume1783155.0
PE Ratio26.43
 
Earnings Per Share
YearEPS
2016(E)$4.468
 
Capitalization
Shares Outstanding438MM
Market Capitalization$51723.00MM
 
 

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