The Big 3: COST, STX, XOM

Core Viewpoint - The market is currently cautious due to developments in Japan's bond market and upcoming major earnings reports, particularly in the cloud sector, while maintaining a cautiously optimistic outlook overall [2][3]. Group 1: Costco - Costco is identified as a best-in-class retail stock, with a trading action that suggests potential for a reversal to the upside despite a currently unfavorable chart [4][5]. - A bullish trade strategy involves selling two December expiration 990 calls and buying one January 930 call, with a total cost around $16 to $17, indicating a bullish outlook with defined risks [6][7]. - Earnings are expected on December 11, which could influence stock performance, with current trading around $911.24 [7][16]. Group 2: Seagate Technology - Seagate has seen a significant run-up of nearly 13% in the last five days, but there is resistance around the $300 level, leading to a strategy of selling an out-of-the-money call spread expiring on December 19 for a credit of about $2 [16][17]. - The stock has shown a strong upward trend, but recent price action indicates a potential pullback, with key levels to watch being around $279 for resistance and $230 for support [19][21]. Group 3: Exxon Mobil - Exxon has had a modest year-to-date increase of about 8%, with a volatile chart suggesting a potential retreat, prompting a strategy of buying a put spread (115-110) for around $1 [24][26]. - Key resistance levels are identified around $115 to $120, with the stock currently trading at approximately $116.85, indicating a critical area for potential consolidation or slowdown [32][34].