JO (coffee prices) looks like it has bottomed and is beginning to form a reverse head and shoulders. Starbucks looks like it could be topping out. Time to short Starbucks? I would really like to hear from some longs who are good with charts and TA as to why I might be wrong?
First of all, JO isn't forming a reverse head and shoulders. Every new technical analysis wannabe sees head&shoulders patterns everywhere.
Second, you are equating higher coffee prices with the demise of SBUX. First of all they are hedged through 2014. Coffee only accounts for 10% of their overall costs. They will make it up in third world lower labor costs and high margins in tea, pastries and everything else they sell. Relax.