Schwab Network on $COST (Nov 2, 2026)

Let's take a look at Costco, it's your second choice. A more defensive stock, and a completely different investment strategy . The stock has risen by about 19% since the beginning of the year . What do you think of Costco?

I ca n't believe I'm going to talk about it this way, because Costco is one of the stocks I trust to buy. But I think this defensive move, which we have seen over the past week, has gone too far .

Very quickly. I still want to own this stock in the long term, but in this short period, I think some profits should be made. Therefore, I plan to sell a simple call option next week, on November 13, a call option at 1050-1055, to make a profit of about two dollars.

Again, I don't even remember the last time I considered using a bearish selling strategy on Costco stock, as it is one of my core strategies. But, for a short period , I think this strategy will work.

As you know, momentum has increased by more than 11% during October alone, when you look at Costco's stock and the movement we've seen. It is also important to clarify during this section that this is just a deal.

It is not your investment forecast, nor is it your overall vision of the company . It is simply a potential short-term investment opportunity in Costco shares.

Yes, you did well in describing the timing of the trading activity here . We have already surpassed these previous high levels. But today's movement has not yet brought us back to that remarkable high point.

The price difference started at the 1065 level in conjunction with the earnings announcement. Things were already getting worse before the announcement, but the announcement made them worse.

However, this level remains an important upward point to watch. Today's highest level reached around 1028. Therefore, it is easier to identify the downward trend. We have a price difference around 996, and a notable bottom near 980.

The upward line connecting the two bottoms is very steep. It can also be said that this forms an upward wedge-like pattern, which is usually considered an indicator of a downward trend.

Therefore, watch to see if the price starts to fall below the trend line, and if it will continue to fall. It might even start to close the price gap if a drop occurs. Now, looking at the moving averages we are tracking, the five-day exponential moving average (in dark blue) is close to 1010.

If we fall below it, the trend line, the 21-day exponential moving average (in greenish-blue), is currently around 983. The Relative Strength Index (RSI) has paused here. The upward green trend line was broken , as well as the short-term downward red trend line.

We have passed this level, and now we have temporarily returned to the overbought zone . The 70 level usually indicates strength in markets with a clear trend. But I notice a slight discrepancy here; while we are recording higher price peaks, the Relative Strength Index (RSI) is not following this trend.

Therefore, this is not what we would like to see; there is a discrepancy between the pace of gains and the actual price movement. Now, we can see that the trading volume gives us an important point to watch.

There is relative fluctuation between 975 and 1010. There are no significant bullish indicators that warrant attention in terms of notable trading activity . Probably around 1040 and 1070, but these levels are very small compared to the rest of what we see in the trading volume data.

Well, today we are trading slightly below this range, at 102854. However, we are still moving upwards with the market in general. Costco's stock rose by approximately 1.5%.