we're taking a closer look at the retail sector this morning with matt cavanaugh of cmz trading. d morning matt. > > good morning. > > yesterday on the down day that we had, costco and wal- mart hit new highs. what do you think about costco stock? is there more room to run? > > well, when i take a look at costco stock, i think it's a great company, but i think it's really priced for perfection here. they really did blow their earnings out: $1.39 a share versus $1.31 expected. they had really nice earnings, but i look at this stock and i say, "hey, new highs, it's pretty expensive..." i think it's probably reached its top, at least in the near-term. > > what does that say to you as a trader when you see a couple of big retail names like we saw going higher - as i mentioned, on down days - does that mean anything at all? > > well, i think that it tells you a few things: number one, people are still having to invest, and they're looking for safe places to put their money. you see this turmoil all over the world, you hear things about europe, you hear things about a slowdown in china,

matt cavanaugh of cmz trading joins us now for chart talk. t, monsanto is one of those stocks we talked about extensively during the drought. it had a good run, but sold off yesterday on earnings concerns. is this a buying point for investors? > > i think that it's a holding point for investors. this is a really big support level for monsanto. they came out, their earnings were a little bit less than what the street was expecting. it looked like their fourth quarter was weak, but it typically is weak. this is a great company, but i think it's a really big inflexion point for them, and i would say wait and see what happens. > > where would you like to purchase this stock if you could? > > below $88, $89 a share. i think the next lot of support is $82 a share. but you know, you're really not going to go wrong with this over the long- term, i believe. you're still getting a pretty decent yield of 1.7%. the fundamentals in agriculture are strong and remain strong, and monsanto is a great, great company. as we've seen, they've had a great run, but

matt cavanaugh of cmz trading joins us now for a look at the charts on apple ahead of earnings after close. what do you think here matt? this stock is a heavyweight. > > yeah it sure is. i tell you what, all eyes are going to be on this company. they are a bellwether for the u.s. economy and the u.s. consumer. i really don't like the way that the stock has been moving. it really struggled to find its footing around $700, and sold off and kind of bounced around here. but, i'll tell you what, there's a big move priced in. if you look at the options, they're looking for about a 5.5% move, which is much greater than the 4-4.5% move we've seen over their last eight earnings cycles. so i think this is a big stock to watch, and you know, it's a big weighting of both the nasdaq and the s&p - almost 20% of the nasdaq tracking, 4-5% of the s&p - so this is a big, big weighted stock, and a lot of people are going to be watching this. > > what do you think happened here? the stock was trading around $705 back in september. now it's down near the $600 range. what do you think? > > well, i've had