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This "COW" Stock is Entering Buy Zone

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Trade of the Day Wake-Up Watchlist

"COST is on a pullback and defensive plays are key going forward."

Bryan Bottarelli, Head Trade Tactician, Monument Traders Alliance

Bryan Bottarelli

Editor's Note: Back in May, legendary investor JC Parets warned our readers to IGNORE the mainstream's market crash narrative.

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Ryan Fitzwater, Publisher


When it comes to trading in October after a rate cut, the numbers don't lie.

Dating back to 1973, the S&P has averaged a -1.1% return 3 months after the first rate cut.

So going forward, I'm taking a more defensive approach.

One defensive play I'm watching right now is Costco (COST).

As you'll see in the chart below, shares of COST dipped 1% despite a recent fourth-quarter earnings beat and revenue topping Wall Street estimates.

Despite the modest dip, I believe we're in the buy zone for COST.

Rate cuts have been historically good for consumer staples like COST – a company that benefits from a loyal following that's consistently growing its membership count.

Now, as COST hits a key $900 support level, I'm looking for a bounce.

 

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Action Plan: COST is entering a key "dip buy" zone on a pullback, and I'll be looking to get positioned in The War Room.

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