Why Walmart Is My Problem Child

Walmart (WMT) is possibly the name that brings me closest to breaking my first rule of trading.

What's not endearing about a firm that fights back? While e-commerce in general, and Amazon (AMZN) in specific was out laying waste to most of the retail sector over the last couple of years, Walmart kept buying up smaller e-businesses such as Jet, and forging strategic alliances as they have with Alphabet (GOOGL) . Walmart was a solid performer for this guy in 2017. In fact, the kid took advantage of weakness across the space last year to profit from the likes of Kohl's (KSS) , and Macy's (M) as well.

Being a trader, I took my leave, and eventually re-entered all of these names. Guess what? They all seem to be working quite nicely for me again. Except for Walmart. My problem child. Raise wages? I'm a fan. That wins local support despite hampering margins. Help employees with tuition? Even better. JP Morgan analyst says that Amazon will match Walmart in US sales by 2021? Uh oh.

Still, Walmart fights back. I truly love that about this firm. Compete with Amazon and Alibaba (BABA) in India by grabbing Flipkart? Excellent. An eventual spin-off could be worth a lot of dough. Test concierge shopping services in urban America? Awesome. No, Walmart is not going away, but where do you plant the flag? The firm holds their meeting with their associates this morning at 9 am ET. Then they'll answer questions for their investors at 13:15 ET. If this does not push the shares in the right direction, then Houston, maybe we have a problem. If you trade this stock, you need to pay attention this afternoon. None of that late Friday tomfoolery. Got it?

See the Fibonacci Time Zones? These have been nearly precise in timing the last few disruptive moves in market pricing for Walmart. Please notice that if our famous twelfth century Italian mathematician is spot on, WMT is due for some excitement in very early June. Oh wait...today is very early June. Goose bumps.

Target Price: 87.50
Pivot Point: 80
Panic Point: 76

Looks like the August $75 puts could still pay a rough $0.75. That could possibly come in handy, either as lunch money or a point of reduce entry if so forced.

Amazon, Alphabet and Kohl's are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells AMZN, GOOGL, or KSS? Learn more now.

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