Market Read®

  • Monday, July 14 2014

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 operates membership warehouses that offer a selection of branded and private label products in a range of merchandise categories in no-frills, self-service warehouse facilities. The company's product categories include candy, snack foods, tobacco, alcoholic and non-alcoholic beverages, and cleaning and institutional supplies; appliances, electronics, health and beauty aids, hardware, office supplies, garden and patio, sporting goods, toys, seasonal items, and automotive supplies; dry and institutionally packaged foods; apparel, domestics, jewelry, house wares, media, home furnishings, cameras, and small appliances; meat, bakery, deli, and produce; and gas stations, pharmacy, food court, optical, one-hour photo, hearing aid, and travel. It also provides business and gold star (individual) membership services. As of April 26, 2011, the company operated 581 warehouses, including 425 in the United States and Puerto Rico, 80 in Canada, 22 in the United Kingdom, 7 in Korea, 6 in Taiwan, 8 in Japan, 1 in Australia, and 32 in Mexico. It also has Costco Online, an electronic commerce Web site, at costco.com in the United States and at costco.ca in Canada. The company was formerly known as Costco Companies, Inc. and changed its name to Costco Wholesale Corporation in August 1999. 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 $74.93, 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 74.93.

This means that when COST closes above $74.93, we expect a short squeeze to begin that could quickly drive the price of COST considerably higher.

Date Short Volume Short Value SqueezeTrigger
2014-06-30 1799757 210384394.272 116.896
2014-05-31 6407078 734269078.618 114.6028
2014-04-30 10156424 1147882087.41 113.0203
2014-03-31 10972303 1249780423.07 113.9032
2014-02-28 8716640 994269643.248 114.0657
2014-01-31 10454245 1204192073.39 115.1869
2013-12-31 8237841 986415557.022 119.742
2013-11-30 8662804 1062872341.42 122.6938
2013-10-31 10157811 1173456737.03 115.5226
2013-09-30 3550546 408213019.657 114.9719
2013-08-31 8380729 962916429.548 114.8965
2013-07-31 696487 77172640.1149 110.8027
2013-06-30 7572557 835012987.043 110.2683
2013-05-31 10385906 1163087493.81 111.9871
2013-04-30 7770697 826450925.296 106.3548
2013-03-31 943586 96233316.6648 101.9868
2013-02-28 7328447 747659155.61 102.0215
2013-01-31 9742749 989700594.492 101.5833
2012-12-31 18445737 1860588288.86 100.8682
2012-11-30 14885608 1464249625.01 98.3668

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
2014-06-10 -0.7 471100 487940 -16840 -240.5714286
2014-06-09 -0.45 833866 681734 152132 Bearish Bias
2014-06-06 0.48 823800 742818 80982 1687.125
2014-06-05 1.46 1220191 1255166 -34975 Bullish Bias
2014-06-04 0.55 633572 549143 84429 1535.072727
2014-06-03 -0.16 554573 467973 86600 Bearish Bias
2014-06-02 -0.34 514412 490102 24310 Bearish Bias
2014-05-30 1.5 1423962 960334 463628 3090.853333
2014-05-29 -0.53 1413005 1382105 30900 Bearish Bias
2014-05-28 0.38 1023095 1227494 -204399 Bullish Bias
2014-05-27 -0.8 1306386 1095644 210742 Bearish Bias
2014-05-23 0.14 525763 509962 15801 1128.642857
2014-05-22 0.19 424408 527371 -102963 Bullish Bias
2014-05-21 -0.61 814920 769960 44960 Bearish Bias
2014-05-20 -1.15 921533 1097436 -175903 -1529.591304
2014-05-19 0.76 1173965 817354 356611 4692.25
2014-05-16 1.26 1255795 770147 485648 3854.349206
2014-05-15 -0.78 705361 1049906 -344545 -4417.24359
2014-05-14 -1.17 613855 539684 74171 Bearish Bias
2014-05-13 -0.22 547859 580259 -32400 -1472.727273

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 15.14 73.22 9094 472 95.07%
SqueezeTrigger 12.746 22.38 7780 471 94.29%
Group Correlation 7.358 15.0 1309 86 93.84%
Valuation 14.484 26.96 4201 302 93.29%
Seasonality 7.455 15.2 42634 4138 91.15%
PatternScan 8.448 11.36 133678 19298 87.38%
Events 6.937 11.19 3396 544 86.19%
GATS 5.386 7.94 45118 8572 84.03%
Earnings 8.677 10.28 21694 4355 83.28%
Naked Shorts 14.525 10.84 2232 589 79.12%
Friction Factor 7.506 3.63 5606 1607 77.72%

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$117.86
52 Week Range$109.50 - $126.12
1 Month Range$114.51 - $118.64
Avg Daily Volume1722480.0
PE Ratio25.91
 
Earnings Per Share
YearEPS
2014(E)$4.468
 
Capitalization
Shares Outstanding438MM
Market Capitalization$50996.00MM
 
 

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