Revisiting Our Profitable Predictions on Best Buy and Dollar General
Back on July 17, I published a Trade of the Day titled “Why Best Buy’s Resistance Level Is Worth Tracking.”
In it, I wrote…
Whenever you have a stock hitting a double top resistance – at the same time that insiders are selling stock – your speculative antenna should go up. Why? Because that’s two bearish indicators – occurring simultaneously. That’s exactly the situation facing Best Buy (NYSE: BBY) right now…
A big part of trading is following support and resistance levels that just occurred – and Best Buy at $75 qualifies as the most recent resistance level worth tracking. Combine that with two significant insider sales – and this is a name worth biasing lower.
Now let’s look at how the company has reacted since we published that article, which advised readers to bias Best Buy lower at $75.
It’s moved all the way down to its current level of $63.
On April 16, I published a Trade of the Day titled “How a Florida Getaway Revealed This New Play.”
In it, I wrote…
Despite its massive presence in the south, Dollar General (NYSE: DG) still has very minimal exposure to the northern states – which is why the company is still in rapid expansion mode.
During fiscal year 2018, Dollar General opened 900 new stores, remodeled 1,050 stores and relocated 115 stores. And during fiscal year 2019, it plans to open another 975 new stores, remodel 1,000 stores and relocate 100 stores.
This is the sort of growth that keeps stock charts moving up. What’s more, Dollar General management is quite confident in its growth model – which is why the company bought back 9.9 million shares for $1 billion during fiscal year 2018… Look to continue riding Dollar General with an upside bias.
Let’s look at how the company has reacted since we published that article, which told readers to bias Dollar General higher at $95.
It’s moved all the way up to current levels of $156.
Just this week, Barron’s said that 75% of the goods Dollar General sells are not subject to China tariffs. That’s likely why John Heinbockel of Guggenheim Partners said, “Dollar General is uniquely positioned, relative to most retailers, to manage these tariffs.”
Action Plan: It’s often a good idea to keep tabs on past Trade of the Day forecasts because, as you can see, many of them can make you a lot of money.
Shorting Best Buy at $75 (now at $63) and buying Dollar General at $95 (now at $156) are just two recent examples. For more profitable information and exact trade advice on potential setups like these, join me in The War Room!
About Bryan Bottarelli
Bryan graduated with a business degree from the highly rated Indiana University Kelley School of Business, and his first job out of college was trading stock options on the floor of the Chicago Board Options Exchange. He was mentored by some of the country’s top floor traders in the heart of the technology boom from 1999 to 2000, where he learned to identify and implement some of his most powerful trading secrets. Now he shares his secrets with a group of elite traders. We will be republishing some of his highly sought after content from his free e-letter, Trade of the Day.