Anatomy of a Great Trade: Right On Target – TGT (and it’s still got room to run)

by | Jan 12, 2024

Smart traders have told us to ignore the news.

But should we?

Isn’t the news relevant to our trading?

Well, if we look at Target (TGT), the answer is definitely yes.

We should absolutely ignore the news.

Because the news on TGT back in October 2023 was awful. They’d made a marketing blunder and their earnings were sinking.

According to the headlines, TGT was canceled, yesterday’s news, or worse.

But for a deep value investor, October 2023 was an incredible time to buy.

Here’s the chart:

Right when all the bad news was coming out, TGT hit the bottom Bollinger Band™.

That’s a Deep Value trader’s excitement point.

And what happened if you completely ignored the news and bought a stock at $105 that had a “fair value” of $180?

You’d be up big right now.

You’d be sitting on a 34% gain with $40 of upside still remaining.

Listen to the news at your own peril.

Deep Value investors definitely do not.


Happy trading,

— Scott Welsh

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