Stock watchers are viewing wholesaling powerhouse Costco with a rather jaundiced eye lately.
According to reports in The Street, Costco may be starting down a great big stock selloff after share prices closed reflecting losses for the third trading session in a row as of Monday.
The stock price at Costco has been a bit volatile, but generally powerful — particularly between August and December of 2015 — but stock prices started trending down as soon as the New Year began, with January then February posting lower monthly highs – and March shaping up to three-peat the trend this month.
Some recovery in price was seen in February, and the price was apparently leveling out at slightly higher than the stock’s 200-day average. But the month ended badly, with an earnings report that missed expectations and that opened up a period of volatility on the market around its stock price.
Last week, the stock closed at a low of $147.38. The concern now is that if the price falls below that level this week – the flood gates are gonna open and the selloff will really get going in earnest.
The advice on the street now is to watch Costco and its monthly lows closely, as several advisers are insinuating the time to dump may be near.
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