Hamilton's E-Wave Analysis

COST, Cosco update

cost

Back in June, now six months ago,  we suggested stepping aside, getting out, selling or whatever on the simple basis that we did not expect the stock to go much beyond $95 (it was $93 at the time). We did mention the Mnt. Everest syndrome that somehow sucks stocks to about $100. This one went to $105.97, including overnight, $99.44 without. When we suggest selling we did so with the average investor in mind, one that is completely undisciplined. If all our readers were “professional” all the time the sell option would not exist, simple because you do not sell a stock that has momentum going for it, after all the sky is the limit! Instead you would ratchet up your stop-loss ( to the trend line) and let events dictate when it is sold. Personally, we would sell here if we had not done so back in June. With a p/e of 24 this one is rather rich relative to the market.