It takes big money to move big names and when they start moving - then additional money follows them like crazy.
Case Study: WalMart
In a year when everybody was super obsessed with Amazon, WalMart has scripted one of the most impressive turnarounds on Wall Street. And it all started with this - Simple Breakout
WalMart Breaks out pic.twitter.com/2GGW6kdfk8
— Deepak Singh (@smarket) April 7, 2017
Was this breakout surprising?
One of the best lesson I have learnt: When it comes to Large Corporations - Execution is not the issue....Strategy makes all the difference
— Deepak Singh (@smarket) October 10, 2017
WalMart in 2016 started scripting a hybrid -Online/Instore business model with lots of experiments - a clear sign that company was trying to find out what clicks with end consumer.
WalMart acquisition of https://t.co/0PzLWUWBEn is a significant industry changing M&A activity. Major change in cost structure expected
— Deepak Singh (@smarket) August 12, 2016
The strategy to find a new business model in this new world started working for WalMart. Good economy helped too with sales momentum before the breakout happened
WalMart same-store sales last quarter jumped 1.8%, marking the biggest quarterly increase in four years. Yeah pessimists will spin this too
— Deepak Singh (@smarket) February 22, 2017
Here's what the breakout has done to WalMart stock in last six months - Up 36%
The Business of Investing is not same as Investing in business. You have to know how stocks make a move and try to capitalize on that opportunity. It means following fundamental newsflow and its impact on Price Action.
Price Action is one of the best ways to make good investment decisions. That's what I teach all the time.
If you find Price Action fascinating - then Science of Stock Price is a good place to start. It's a website designed to help you learn various Price Action concepts.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers