I first identified a potential bottom in Whole Foods Market (NASDAQ:WFM) back in July. The following month I became even more convinced of a bottom after a rumor of Carl Icahn’s involvement allowed me to sell another round of call options at a nice profit. After that trade, I made another swing trade with shares in what was essentially becoming a trade-the-range strategy.
So, I can only shake my head at a major missed opportunity as Whole Foods Market made a major breakout after last week’s earnings.
Whole Foods Market, Inc. (WFM) prints a major breakout that confirms its bottom with an exclamation point
I am not even sure trying to interpret the fundamentals in this situation is useful. It was surely the fundamentals which drove investors to dump WFM overboard in May for a major breakdown. Those sellers are experiencing major regret right now. Just six months later, investors and traders have practically made the exact opposite conclusion as that May gap has almost filled. Traders and investors looking to go long WFM should treat any pullback toward the 200DMA as a gift. I will at least.
In honor of this major bullish moment, I cannot help myself in reposting this incredibly funny video by a rapper from my hometown (and high school even): “Whole Foods Parking Lot.” Traders better find a spot quick…the quinoa is flying off the shelves…Be careful out there!
Full disclosure: No positions (regrettably!)