Stocks This Week: Buy Costco And Starbucks

November is usually strong in months that are two years past an election such as this year. In fact, the following 15 months after a mid-term election have a very bullish history. It is also a strong month for many stocks.

Costco has been strong in November, rising 79% of the time over the last 29 years. The average gain has been over 3%. There are higher lows in momentum both daily and weekly. The stock is very oversold monthly. The stock is likely to break out of the triangle that has been in force since May. Such a development is likely to push the stock closer to the $550 area.

Costco Monthly Histogram Of Expected Return

Costco Weekly Graph

StarbucksSBUX
has been the fifth best NASDAQNDAQ
performer in November, rising over 70% of the time. The weekly graph shows technical strength in the form of a relative strength reversal to the upside and higher momentum lows. The $110 level is a reasonable target.

Starbucks Monthly Histogram

Starbucks Weekly Graph