timwest
Short

Starbucks SBUX head and shoulders top in place

NASDAQ:SBUX   STARBUCKS CORP
354 5 8
See chart.

See the price of coffee             KC1!             has doubled this year: from just over $1/lb to over $2/lb.

Note: Retailers are weak. Economy is flat. People spent their money on home heating oil             and high energy costs and have been cutting back on discretionary coffee             purchases. Perhaps the K-Cup is eating into SBUX             business. $1 at home instead of $5 out at the local             Starbucks             .

Technically, the last rally should have taken out any weak shorts and it maintains a nice downward trend with a very visible "level of maximum supply" at 77 that I have labeled. You can see that over 20 days of trading action have occurred at that price and it represents supply or "breakeven- itis" selling that can take place. Those who bought there are happy to exit at breakeven.

Good trading to you.

Tim 2:34PM EST, 3/13/14
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I agree
I'm short too (75.1)
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I disagree with one thing...No matter how high my heating bill gets I'm getting my Starbucks...And so are other people...It's legalized Crack....

But I did like how you backed up your technical pattern with their costs doubling...Can't argue with that....
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timwest PRO ChrisMoody
Thanks Chris. Perhaps those who are "on the cusp" or "living paycheck to paycheck" will cut back on a new shirt or new clothes in order to keep the smart-phone lit up and the Starbux in the cup. I appreciate the feedback, anytime.
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Good call on the short. Good explanation. Nice support here but i'd like to see it close gap 68.30. Also keep in mind Earnings. My target was $70 and exited. Don't like holding through earnings as stocks tend to be sporadic. It's usually a crap-shoot.
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Great call here too!
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