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Event?

COSTreportsitsfiscalQ4earningsonWednesday,Oct。

9thbeforetheopening?

Theoptionsmarketisimplyingabouta2。

75%onedaymove,whichisaboveboththe4qtravgofabout1。

15%andthe8qtravgofabout1。

35%。

Sentiment?

WallStreetanalystsaremixedonthestock,with15Buys,15Holdsand1Sell,withanaverage12monthpricetargetofaround$118?

Thestockhasbeenveryconsistent,gaining15-25%in2010,2011,2012,andsofarin2013。

OptionsOpenInterest?

Openinterestactuallyhasmoreputsthancallsoutstanding(52kvs。

44k),abitofasurprisegiventhestrongstockperformanceoverthepastfewyears?

MostoftheopeninterestisconcentratedinOctoberandJan14。

PriceAction/Technicals?

COSTschartisthedefinitionofanuptrend?

ConsistentCostcoindeed,asallthemajormovingaverageshavebeenupwardslopingsince2010,andthestockhasonlytradedbelowits200daymovingaverageforafewdayssince2010?

Quiteanamazingrunfora$50billionmarketcapcompany。

COSTdailychart,CourtesyofBloomberg

Intheshortrun,the$120areahasbeenresistantoverthepastfewmonths?

Thatistheall-timehigh,andtheobviousleveltowatchonanyrallyfromhere?

The200daymovingaveragecomesintoplayaround$109,whichisnearthelateAugustlowaswell?

Fromatechnicalperspective,Iwouldexpectthe109-120rangetoholdinthecomingmonths。

Fundamentals?

ThehealthyaspectofCostcosstockriseoverthepastfewyearshasbeenthatithasmirroredthespeedofearningsgrowthforthemostpart?