Who the heck are you? What qualifies you to make
the statement that there is no breakout in sight?
I'll go with my expert, head of TA @ Dain. " Moving up
on fair volume to a target of 31-32, but could be 35
if the volume were to continue to improve. Good for
a trade up from here."
The short term resistance was 26. It broke
through this point with strong volume; 26-28 was pure
ether, and was most likely momentum mixed with serious
short covering. Call option buying is light and put
volume is actually a bit heavier, but there is no
takeover premium showing in the options. Short interest is
2 1/2 X daily volume, big- but not out of the norm.
Until there are more sellers than buyers SBUX will be
bought on dips and probably go higher-hard to believe at
50X multiple and very little good news on the
earnings front. I expect big selling with the release of
earnings-so picking up cheap puts for insurance is a prudent
idea. Buy these puts and treat them as insurance-don't
let this rise go to waste-BUY PUTS FOR PROTECTION. I
would buy the NOV 25 (sqxwe) at a 1/4 =$25. This gives
you the right to sell 100 shares at 25 on or before
NOV 19 which fortunately is after
What a wild ride!
Buffs+16 vs K State- take the
BUFFS and the points!!
Your logic is good, but according to chart
analysis a break out for sbux is not in the near future. I
hate to burst your bubble.....as hope springs
eternal......but sbux won't get over 30 for some time.....book it
Starbux has not traded above 28+ for the last
four months. There is a good chance it will breakout
to the upside (above 28) this time around. If this
happens, everybody who shorted Starbux the last 4 months
will be underwater. If these shorts panic in mass and
try to cover, we'll see 2-3 days heavy trading to the
upside which will carry SBUX significantly higher.
It's all a game of nerve of course, but I'm expecting
a breakout to the upside which will carry SBUX
Citigroup just had a breakout at 50,
it ran to 55, if anyone wants to look at the chart
to learn the power of a breakout.
who sold at 28, said they were looking to buy back at
a lower price. What they don't realize is that they
are buyers, not sellers. Lots of Luck to 'em cuz this
puppy is going higher.