The S&P 500 has been flat in the coming week prior to options expiration week (OPEX). The OPEX week (March 11-15) has been strong, but the following week (March 18-23) has been bearish. A higher market is likely into April. Here are a pair of stocks that report results in the coming week. Both are projected to appreciate.
Costco Wholesale Corporation engages in the operation of membership warehouses in the United States and overseas. Seasonality is improving. March has been the fourth best month of the year to hold this stock. From March 9th to April 12th, the share price has risen 73% of the time over the last 31 years. The company reports earnings on March 7th. As we can see in the daily histogram for the month of March, this date has been the low day in the month. This coincidence implies a favorable response to the earnings announcement. Note that the monthly cycle confirms the seasonality by rising into April. The shares are likely to approach $800.
Costco Daily Histogram for March
Costco Daily, Weekly, Monthly
Costco Monthly Cycle
Target Corporation is as a general merchandise retailer in the United States. This company also reports results in the coming week and a positive reaction is expected. Technically, the three-up graph is constructive. Relative strength has accelerated since November. The monthly strip shows a downtrend line that has been reversed to the upside plus higher lows in relative strength. March has been the best month to hold this stock. Target has risen almost 66% of the time for an average gain of 3.9%. The stock is likely to extend its uptrend to the $175-$185 area.
Target Daily, Weekly, Month
Target Monthly Histogram