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Ready, Set, Go!

1 day and counting till Black Friday! Retailers like Walmart (WMT) , Kohls (KSS), Sears (SHLD) , Target(TGT) and Amazon (AMZN) wait all year long just for this one day.  It is the day that they are supposed to turn profitable on the year, hence the term “Black Friday”.

With the economy still struggling and in the process of exiting one of the worst recessions in U.S history, many of the retailers have started slashing prices weeks ago and some even in the summer months.  Walmart (WMT) anounced that it will match prices from any one of it’s competitiors. This has fired up the competition, causing Amazon (AMZN) to lower its prices. An estimated 134 million people will shop this Friday, Saturday and Sunday.

This all comes on the heels of last year being one of the worst year’s on record. Will they or will they not come? And if they come will they spend? Well, based on the stock prices of these companies, Wall Street thinks ‘YES”. Walmart (WMT) has rocketed upwards in the month of November. Trading from a low of $49.52 to today’s current price of $55.

Based on this move, sales better not disappoint or we are going to see alot of selling pressure enter into the stock. We believe that Walmart is the leader of the pack and if anyone was to beat expectations they would be the ones to do it. That being said, we would prefer to enter the long side after a pullback of some sort.

I know one thing, you will not see me on line to enter the store at 3am. I will happily wait a few more weeks when the crowds subside.

Happy Thanksgiving to all!

 

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