I will buy the futures (probably today on this further dip), and may write naked puts. June 30th is when the USDA releases acreage planted report. Market expects an increase, but I would think it's already discounted. If not I would just average down off of that.
Reuters
Wal-Mart June Sales May Miss Forecast
Monday June 21, 8:16 am ET
CHICAGO (Reuters) - Wal-Mart Stores Inc. (NYSE:WMT - News) on Monday said June sales at stores open at least a year were tracking "around" the low end of its forecast, a term it uses to indicate that sales could miss its expectations.
The world's biggest retailer made no change to its forecast for a 4 percent to 6 percent increase in June same-store sales, but Wal-Mart uses the word "around" to show that sales growth could be slightly below its forecast range.
On a recorded message updating sales through June 18, Bentonville, Arkansas-based Wal-Mart said sales slowed over the June 12-13 weekend, but picked up later in the week as people bought Father's Day gifts. Last year, Father's Day was on June 15, but this year the holiday fell on June 20, pushing back some shopping demand.
The company also said spending increased after people received mid-month paychecks, suggesting that household budgets remain tight despite a recovering economy.
The best-selling categories last week included food, hardware, paper goods, pet supplies and toys.
Wal-Mart noted that the July 4 holiday lands in the July sales reporting period, but last year it counted in the June period. The retailer repeated its forecast that the shift in July 4 reporting periods will shave just under 1 percentage point from June same-store sales. |
