Wal-Mart Stores, Inc. (WMT), the discount retailer we all know, is reporting earnings this week. It represents a great trading opportunity for a couple of reasons:
1) My sense is that Wal-Mart earnings will be very good. It has held up relatively well in the recession because of the inexpensive prices, but we’re also seeing very small signs that the recession may be ending. This will probably be reflected in the profits Wal-Mart shows this week.
2) Technically, it looks to be consolidating in a narrow range so far in May and is poised to bounce off the 50-day moving average.
When the technicals and the fundamentals point to good news, it’s always a good trading opportunity.
By Tim Bourquin, Trading Content Director, MoneyShow.com
