This COST chart is a rollercoaster but I actually love the setup here. After cratering to the low 860s back in December, it's rebounded hard and just ripped through the 1000 level last month before pulling back a bit. We're sitting just under those highs now and it feels like the momentum play is back on. Every dip under 980 gets bought up lightning fast, and the last few weeks have basically been a sideways coil. Feels like it's setting up for another leg higher.

Costco isn't just a defensive retail name anymore, it's a legit growth machine with membership renewal rates that are basically bulletproof. The fact that they're still finding ways to expand margins even with inflation and wage pressure is wild. Last quarter's same-store sales numbers were strong, especially in food and consumables, and that's the sticky stuff that keeps people coming back. I think people underestimate how much pricing power Costco has as long as they keep delivering value to members.

The risk here is that we're trading at a historically rich multiple, so if earnings disappoint or comps slow down, there could be a quick air pocket. But I just don't see the thesis cracking before the next membership fee hike hits, which is the big upcoming catalyst. Historically, every time they do that, you get a wave of extra revenue and almost zero churn.

With that in mind, I'm playing for 1152.60 over the next 8 weeks. If the membership fee talk picks up and earnings hold up, I think we see a quick move past the recent highs. Momentum looks alive and well here.