To The Moon

$Wal-Mart(WMT)$ $Target(TGT)$ $Albertsons Companies, Inc.(ACI)$ $Kroger(KR)$ $Costco(COST)$ 

🌟🌟🌟 🛒🛍️ I’ve exited my Walmart positions, here’s why:

🤑🛒 The Greedflation Gravy Train: Grocery Giants Gobbling Profits 🤑🛒

Kia ora Tiger traders!

Hold onto your trolleys because we’re diving into the juicy world of "greedflation." This sneaky phenomenon occurs when companies use the excuse of inflation to hike prices way beyond what’s needed to cover costs, padding their profits at our expense. It’s like that one friend who always "forgets" their wallet at lunch~ they’re getting a free ride, and you’re footing the bill! 💸

Let’s focus on where it hurts the most: groceries. 🥑 During the pandemic, grocery prices shot up faster than you could say "cost of living," with prices now sitting about 25% higher than in the pre-pandemic days. And yes, even your shampoo has joined this greedy parade! 🚿

The big players like Walmart 📈, Target 🎯, Kroger 🛒, Albertsons 🥦, and Costco 🛍️ have been making the most of this situation. These retail giants didn’t just pass on the increased costs~they added a little extra for themselves. As of 26 August 2024, these stocks have seen the highest trading volumes in the grocery sector:

1. Walmart (WMT) 📈: The world’s largest retailer used its buying power to keep prices up and volumes even higher. Who knew that rollback could roll profits forward so smoothly?

2. Target (TGT) 🎯: Despite facing some bumps, Target maintained strong margins, turning pandemic lemons into some very profitable lemonade.

3. Kroger (KR) 🛒: Steady as she goes, Kroger managed to keep its profits intact, showing it’s a solid contender in the grocery game.

4. Albertsons (ACI) 🥦: Quietly racking up gains, Albertsons proved that sometimes, being under the radar can be very profitable.

5. Costco (COST) 🛍️: Known for bulk deals, Costco also bulked up on margins, showing that even the bargain hunters can turn a tidy profit.

These companies didn't just cover their increased costs~they went above and beyond, resulting in a significant boost to their bottom lines. Dean Baker, a senior economist, recently highlighted that grocery stores have kept prices high even as pandemic-era demands cooled off, allowing them to rake in substantial profits. Furthermore, the rising trend of “value-seeking” shoppers is pushing these companies to offer more deals, yet their margins remain robust.

🔍 **WMT Technical Insight:

WMT appears to be entering a correction phase 📉 after a steady upward climb. The price is showing signs of retreating, with a possible drop down to the $62.69 level, and a further dip towards $56.52 likely as we move into September and October 🇺🇸🍂. I exited my positions at $68.66—why hold the bag, right? I’m steering clear until after the Presidential election 🇺🇸🗳️, as the market could remain choppy. However, there’s a chance the stock could stabilise and hold up through late August, but watch out when they report earnings; it could be as unpredictable as a Black Friday sale! 🛒

This perspective is supported by the general market sentiment, where analysts are observing a potential bearish trend due to breaking down from its recent channel, with some traders even entering short positions 📉. Given the current technical landscape and broader market trends, it’s a good call to proceed with caution here ⚠️.

So, what’s the final verdict? The grocery industry’s biggest players have been feasting on higher prices and fatter profits, and it doesn’t look like they’re planning on a diet anytime soon. Greedflation is real, and it’s here to stay ~ at least for now.

Hey Tiger Traders: In light of greedflation, will you continue to invest in these grocery giants, or is it time to diversify into less inflation-sensitive sectors?

🤖@TigerGPT, with grocery giants clinging to their pandemic-era profits, are we witnessing a permanent shift in grocery pricing, or will competition eventually force a rollback?

Happy trading ahead. Cheers, BC 🍀

@Tiger_comments @TigerStars @TigerPicks @Daily_Discussion @TigerWire @Tiger_Earnings @TigerPM @koolgal