COST 

This is Scott with your Chart of the Day. I want to take a look at Costco ( NASDAQ: COST ) and not just because I got gas there today, and their take-home chickens are delicious, but this chart is looking pretty good too. As you can see, the last couple of days, we have a nice sideways base of consolidation right near that 50-day moving average, that’s the red line here on the chart.

Now, if I zoom out here you can see in the past when we have a nice little consultative base near the 50-day it then proceeds to kind of march higher riding that 8-day exponential period moving average. You can see it back here in October of 2021, you can also see it back here in June and July of 2021. We get a nice little base near the 50-day and then a march up that 8-day exponential period moving average.

And so here we are again, close to the 50-day and the stock is holding that 8-day exponential period moving average. I also like the fact that we had a nice little pickup in volume here. And so when the stock does go up, as it did on this day, it goes up oh higher than average volume. And when it pulls back as it does on this day, it pulls back on less than average volume. I like that because that tells me that the sellers aren’t overly aggressive but the buyers sure like to come in and support price near these key moving averages.

What I want to see from Costco ( NASDAQ: COST ) is a move above this little sideways base of consolidation, kind of like a low handle here, where we have a cup and then I guess you could say that’s a handle but it failed and then they brought it back up. And so here we are handling out again right close to that 50-day.

What I want to see from Costco ( NASDAQ: COST ) is a move through 543.75, coming on, once again, higher than average volume. We want to see a move higher and we also want to see it be able to hold above that daily 8 exponential period moving average. So if this does break out higher but then fails and closes below the 8-day you probably want to close that trade out because it is not doing what we expect. We expect it to kind of move higher and hold that 8-day exponential period moving average so we get one of these nice moves higher.

So that is what I will be looking for with Costco ( NASDAQ: COST ) in the coming days and I may even look to maybe get some started if it comes back to that 8-day and maybe near the 21-day, just to get a little handle on it, keep some in my account and then I can watch it and then add on a break higher. Because as you know, breakouts in this market have been a little gross. So keep an eye on Costco ( NASDAQ: COST ), watch for a move through 543.75 or a little started entry close to these moving averages.

SPY QQQ MPC 

Another crappy week in the market ( NYSEARCA: SPY ), the downtrend just keeps prevailing. At some point, we are going to get a big rebound that is going to reverse all of this but I don’t think that point is coming next week, I think it is going to be a while. It will take quite a while for the demand, for buyers, to soak all the supply from people that were riding the slope of hope down. This is a tough market ( NASDAQ: QQQ ) for you if you continue to try and trade it. If you are just trying to trade all of the volatility, it’s pretty tough for you.

On the other hand, if you have a process, if you are sitting here cooling your jets you are seeing that maybe this isn’t my market because I don’t like to lose money. Then you are sitting here and you’ve got your powder dry and you are just waiting for your train to come by. The best traders aren’t trading. I’m here to tell you, the best traders aren’t trading.

I want to look at MPC ( NYSE: MPC ), Marathon Petroleum. The energy stocks are working pretty well. I got into Marathon Petroleum ( NYSE: MPC ) on this breakout, and I am down 1.16 percent, so basically I am flat but I want to explain it. It would have been nice if this had run up to $80.00 and held, but it didn’t. But does that make me feel like this is a failed breakout? The answer would be no.

We’ve got heavier than average volume today. We’ve got the stock closing above where it opened. For three successive days, we have closes that are higher than the open. And we also have, over the last two days, higher intraday high and higher intraday low. And then I am looking at this as institutional buying here. And check this out, this does look like kind of a typical zigzag, a move up, and then a pullback. Then a move up and then a pullback. Now it’s looking like another move-up pullback and then we are going to wait for a pullback.

I like this stock right here. Again, the takeaway for me today is a positive close, up ¾ of a point, which isn’t a lot. But it is really the positive close combined with this green spike here of over 10 million shares. We’ve got the same thing here, we got another one here. And so the bigger spikes are all green and that is what we like to see.

I think if the stock pulls back a little bit tomorrow, this might be an opportunity, actually, to get into the stock at a little bit lower price. I like the way this pattern is setting up, I like the sector. I like everything that is going on with energy because, frankly, that’s where the money is going.

BROS 

This is Scott with your Chart of the Day. I want to give this BROS ( NYSE: BROS ) chart some Dutch love and I will tell you why; because as you can see BROS ( NYSE: BROS ) has been really just kind of chopping around this 50-day moving average. It gets above, falls back below and today it got above and closed above, actually the second day in a row that it has closed above the 50-day moving average.

Now, I think that is pretty significant because in the history of this stock when it gets above the 50-day moving average it gives you a nice little pop to the upside. So here we are, day 2 above the 50-day and I can actually draw some pretty clear lines on this chart. And anytime I can define my risk with clearly defined support and resistance, that is a chart I want to pay attention to, especially in this market chop.

I can see a clear resistance zone right here at around that $65.00 level. I can also draw this trendline all the way down and we have a couple of touches here. It’s not perfect but what is? Resistance, resistance, resistance, couldn’t get above, couldn’t get above. It finally got above, did it on good volume, and then we have follow-through here today.

I do have a small position here in BROS ( NYSE: BROS ) and I am just kind of letting it percolate now, like a coffee. And the reason for that, other than the opportune pun situation, is the fact that this stock can trade pretty wildly. It is not uncommon to have a $4.00 daily move up or down on this stock. It does trade a bit wide, and if you have seen it trade live, or seen level 2 you can kind of see that.

My main focus now on this trade that I bought here is just to build that cushion. And ideally, this stock will start to trend and give us some higher lows above the 50-day moving average, so that is what I am looking for here. But the fact that this stock is able to get above and close above the 50-day moving average, when a lot of other stocks like Apple ( NASDAQ: AAPL ), for example, are WAY below the 50-day moving average. That brings my attention to this chart because clearly, this stock is holding up pretty well.