Score 9.8 (out of 10): WALMART could be impacted by macro data and rally +6% over next 2 months


What’s Going On Here?

Walmart is among the retailers pushing major discounts as they try to clear overloaded shelves. The company said it would be slashing prices to counteract customers’ reluctance to spend outside of categories like food and household supplies.

Why Now?

WALMART INC indicates an interesting buy set up for the next 2 months. During the previous 4 instances when the ISM Manufacturing New Orders fell below 50 for the 2nd consecutive month, after being >50 for at least 9 months (as has just happened), WALMART INC rallied by +6.5% during the following 2 months, with a hit ratio of 100%. This buy signal received a high score of 9.8 (out of 10). This insight was generated with a closing price of 132.34

What’s This Company About?

WALMART INC is in the Retail-Discount business. Based on the last 2 years’ risk/return profile, this asset is seen as Very Risky. Ticker symbol: WMT US.

What’s My Risk / Reward and Time Horizon?

We found 2 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 140.91 (+6.5%) has been reached.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ under (2), etc.

Previous episodes:

2.6% (2019-08-30), 8.1% (2015-12-31), 6.6% (2012-06-29), 6.4% (2009-06-30)

Historical Chart:


Star (1 to 10)9.8
Time2 months
Hit Rate100%


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