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Walmart: Stepping Back from the Fear

See the world’s largest retailer’s recent selloff from an objective point of view

by Nico Isaac
Updated: February 26, 2018

For stock market investors and traders, the month of February could rightfully be renamed FEAR-bruary.

On February 2, the Dow Jones Industrial Average set the tone of gut-wrenching volatility with an ominous 666-point drop, only to be followed on February 5 by a nearly 1200-point drop, the market's largest ever single-day dive. Commence tsunami-sized ripple effects throughout the major averages and the biggest players among them.

Take, for instance, Walmart, Inc, the world's largest retailer. On Feb. 20, Walmart shares plunged 10.2% in their biggest single-day decline in three decades. The mainstream experts cited a bearish same-day online sales growth report as the reason.

What came next can only be described as a collective outpouring of dread, as these news items make plain:

  • "Cash is King: The Harbinger of Doom?" (Feb. 15 Barron's)
  • "As Stock-Market Rout Spreads, Investors Fear Markets Falling in Lockstep" (Feb. 5 Wall Street Journal)
  • "Why You Should Panic About the Stock Market Volatility" (Feb. 9 MarketWatch)

But what if you had a context for the dramatic price swings, an objective gauge for anticipating those turns before the rug got pulled out from under? Fear would be replaced with foresight, and panic with preparation.

Here, we hand the virtual mic over to our chief market analyst and Trader's Classroom instructor Jeffrey Kennedy:

"I'm not a perma bear or perma bull. The market decides. This is one of things I enjoy about being a trader. I can make money to the upside when markets are rallying but I can also make money to the downside by being a seller.."

"The context provided by the Elliott Wave Principle allows us to separate ourselves from the fear which is currently ingrained in the market. One of the values I find with the Wave Principle is that it can tell me pretty much precisely where I'm right or wrong to the pip, tick or penny."

In his February 6 Trader's Classroom lesson -- recorded and released long before WMT's Feb. 20 disappointing online sales growth report -- Jeffrey referred to several technical indicators, along with the Elliott wave pattern unfolding on Walmart's price chart, and devised a likely near-term interpretation for the issue:

"The current weakness was a fourth wave pullback that still had further travel to the downside."


From there, Walmart continued to fall hard, culminating in the February 20 nosedive. The next chart moves price action forward to Feb. 23:


As for what's next, the February 21 and 22 Trader's Classroom provide a rare double feature on Walmart, in which Jeffrey examines WMT through the lens of RSI, stochastics, and Japanese candlesticks, confirming that his Elliott wave interpretation is fully supported by technical indicators.

Take a minute to watch the following clip from the February 22 Trader's Classroom to hear a major part of Jeffrey's analysis. Simply press play and enjoy!

In Jeffrey's own words:

"Walmart looks great not only from an Elliott wave perspective but also from a technical one."

At the end of the day, objectivity is the ultimate antidote for fear.

Become THAT trader who can see high-confidence entries, get in and get out with confidence — and sleep at night.

Picture this...

Several times a week, you meet with a market veteran and he's one of the most sought-after teachers in the world. He has dedicated his entire professional career to helping traders like you spot and act on high-confidence trade setups.

At every meeting, you watch over his shoulder as he shows you exactly how to spot your market opportunity. And he doesn't just teach principles. He uses real-life market opportunities to show you the telltale signs that a market is about to move. He also coaches you on how to create your trading plan for this setup — including how to estimate upside potential and identify risk-limiting price levels.

Sound like an ideal fantasy? Well...

THAT is exactly what Jeffrey Kennedy is offering you as a Trader's Classroom subscriber!

Here's How Trader's Classroom Helps You Trade With Confidence:

3 times a week, Jeffrey uploads an exclusive 10-15 minute video for you to the Trader's Classroom subscriber area. While each lesson is not a big time commitment, it's packed with trading insights that you can instantly apply to any market. And any time frame. And you can watch and re-watch the lesson as many times as you like.

Today's lesson might be a valuable insight into a historic market setup in Gold... Tomorrow it might be an immediate trade setup in Google. In the past month alone, Jeffrey has taught valuable trading lessons using NKE, AAPL, BAC, JNJ, JPM, FB, QQQ and many more... Whatever it is, each Trader's Classroom lesson delivers lasting insights that compound to change the way you trade forever.

Would you like to have Jeffrey mentor you? Don't miss this risk-free offer...

This Offer Gives You Everything You Need to Launch Your Elliott Wave Trading Journey

Years from now, you'll look back on the next three months as a pivotal point in your trading approach. The learning track we've designed for you includes real-time mentoring, plus four self-paced trading resources. This package would normally cost $482. But today, you can get it for $147.

Here's what you get...

You Get: Ongoing Real-Time Mentoring

Three months of Jeffrey Kennedy's Trader’s Classroom

Over the next three months, Jeffrey Kennedy is your opportunity-seeking Sherpa. He will show you opportunities and dangers in the markets. In fact, as soon as you order, you get instant access to the last three months of lessons! Some of the opportunities highlighted in these lessons are still unfolding.

Plus: A Self-Paced Learning Track

Four trader resources hand-picked from our educational library — a $286 value

Together, these 2 books and 2 online courses combine to offer the best foundation and reference guides for Elliott wave traders.


The Foundations

To start, you get Elliott Wave Principle - Key to Market Behavior (a $29 value). This definitive guide to Elliott wave analysis will be your roadmap and reference guide from here on.


Spot Opportunities

Next, the Visual Guide to Elliott Wave Trading (a $60 value) gives essential insights on how to incorporate Elliott wave analysis into your trading style.


Develop Trading Plan

Then, put down the books and head to a screen, for two online courses. In The Wave Principle Applied Online Course (a $99 value), Jeffrey Kennedy shows you how to spot an actionable pattern and formulate a trading strategy.


Kennedy Channeling

And finally, get unique insights with The Kennedy Channeling Technique Online Course (a $98 value), and learn about an invaluable tool that helps give more confidence to your waves counts.

Bonus: New LIVE Trader's Classroom Lessons Every Month

As a Trader's Classroom subscriber, at least once each month, you are invited to join Jeffrey Kennedy LIVE online for an interactive Trader's Classroom lesson. During these interactive lessons, you can personally ask Jeffrey your questions about the day's lesson, get his responses in real time, and benefit from other subscribers' comments and questions, as well. And don't worry if you're unable to make the live events: We'll post recordings in your subscribers portal with your other Trader's Classroom lessons later that day.

Start Your Risk-Free Subscription Now

Three months of Trader's Classroom, plus four essential trader resources (a $433 Value):