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Two Ways To Play: Costco Costs Less, Makes More

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Strengthen your portfolio in good times and bad.

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Buy in May at Costco

Retail numbers are out this morning and Costco Wholesale (COST) reported another solid month.

According to Bloomberg, the largest U.S. warehouse-club chain said May same-store-sales rose 9% as consumers searched for bargains and consolidated shopping trips on $4 gas. In the U.S. same-store sales rose 7% and increased 15% at its international locations. In all, net sales for the four-week period ended June 1 jumped 12% to $5.77 billion. For another retail idea, see Toddo on TV: CVS Hits the Mark.


From the Bull Pen: Those bullish on Costco can set sell-stops below $70, the 50 DMA. Another option is CVS Caremark (CVS); sell-stops can be set below $42.

From the Bear Cave: Bears might see a downside play in Tiffany (TIF). Entry near $50 should the stock approach that level.


More Food From Monsanto

According to the NY Times, Monsanto (MON) said it will develop a seeds that can double crop yields and require 30% less water, land, and energy to grow by 2030. Monsanto CEO Hugh Grant said the company decided to make this goal public "so this isn't just a bound report on some library shelf." The announcement comes as world leaders meet in Rome to discuss the recent surge in food prices. Grant said it was merely a coincidence, but some believe it is an effort to gain acceptance of genetically modified crops. Professor Glenn Curtis mentioned Monsanto recently in Dow Does Price Hikes.


From the Bull Pen: Monsanto bulls feel comfortable about the long-term prospects of the company. Sell-stops can be set near its 50 DMA ($122).

From the Bear Cave: Those bearish in the Ag space can play the downside in the agriculture ETF (DBA); buy-stops can be set above the 50 DMA ($37).


For more ideas in real time throughout the trading day, check out Minyanville's Buzz & Banter.


Quick Check Around the World

Asian trading closed with the Hang Seng +0.55%, Nikkei -0.65%, Sensex +1.64%, Taiwan +1.28% and Shanghai -0.54%.

A quick check of Europe finds the CAC -0.08%, DAX +0.25%, FTSE -0.11%

As of 8:20 AM EST, S&P Futures are up +6.5 points to 1384, and Nasdaq futures are up +10.75 points to 2031.


A Look At Commodities

Commodities are mostly lower. Gold is down -9.30 points to 870.60. Crude oil is lower -0.05 to 122.25. Silver is lower -0.190 to 16.750, and copper is lower -0.30 to 355.00.

The dollar index is higher +0.259 to 73.678.


On the Radar

Economics

8:30 Initial Claims 370 K prior

Click here for this week's full trading radar.


Almost there. Have a great day!
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No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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