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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: ajtj99 who wrote (61817)	6/7/2022 12:55:17 PM
From: ajtj99	Respond to of 97958

The bullish daily 3-white soldier pattern on TGT failed today as they warned: schrts.co

To: ajtj99 who wrote (61817)	6/7/2022 1:26:43 PM
From: ajtj99	1 Recommendation Recommended By Lee Lichterman III Respond to of 97958

One commodity I watch for for a store's ability to pass along price increases is windshield washer solvent (or what those in the trade call "blue water"). Last fall, it was $1.82/gallon at Walmart. Then you couldn't get it. Then it was $2.19. Now it is $2.62/gallon. That's a 44% increase in 6-months. The thing is, I don't think the increases are done coming through. The resin costs for the plastic keep going up. The freight costs have been going up faster than the pricing. Lastly, just maintaining the same profit margin raises the price. In the past, when costs rose this quickly on "blue water", the sellers of it would cheat and dilute it. You can't do that with Walmart or other large, national retailers like Autozone or Advance, or you could get thrown out of the store for life. That's why I like to do this kind of channel check. It gives you a good idea of where stores are in the price recovery program and what they think of the competitive marketplace. Right now, the pricing is saying they think they have pricing power. We'll see if that holds.