Still, if Target continues to trade in the mid-70s that would be "the way to go," and investors should then "fade Costco," he contended.
Trader Steve Grasso, meanwhile, noted that Costco's earnings results were definitely weak.
"Costco probably will still go lower," Grasso said.
Guy Adami is long CELG, EXAS, GDX,INTC, Guy Adami's wife, Linda Snow, works at Merck.
Steve is long AAPL, BA, BAC, CC, DD, DIS, DECK, EVGN, KBH, MJNA, MU, OLN, PFE, PHM, T, TWTR, GDX firm is long CXO, OXY, BP, CVX, RIG, FCX, AMZN kids own EFA, EFG, EWJ, IJR, SPY.
Dan is long PFE buy-write, long TWTR, long UUP March calls, long GE May 28 puts, long JPM April puts, long XLP March put spread, long XRT March puts, long XLB March puts, long HD put butterfly, long QQQ puts, long INTC March/April put spread.
Opinions expressed by David Seaburg are solely his own and do not reflect the views and opinions of Cowen Group, Inc.