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Green Mountain Coffee Roasters is down over 4.50% today in the face of patent litigation news. Apart from the headlines, the daily had already been concerning, as you can see on the first chart below. Now, even if that does not amount to a classic head and shoulders topping pattern, the stock is clearly facing plenty of technical headwinds as it breaks down from a bear flag on heavy volume today. You can see how quickly the stock could flash down to its 200 day moving average, which actually has not been tested since November of 2010.
Moreover, you can see that such a steep uptrend for an extended period of time conjures up comparisons to Netflix. Note the two monthly charts below. At a minimum, that kind of a move higher brings the “Rubber Band Effect” into play, and leaves GMCR extremely vulnerable to further downside here, regardless of the broad market action.
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You certainly have a grasp of prolly the oldest advertising tactic …
“Sell The Sizzle … Not The Steak !”
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I’m on to you !
You display these “visions of lovliness” … just to attract eyeballs to your blog !
The “vision” above just may be the lovliest yet ! imo
🙂
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Cmon now, alf, there is BOTH sizzle and steak in my blog…New York City steakhouse style.
I’m speechless !!!
I have apparently fallen under the spell of the angel above … those eyes may haunt me forever !
GAWD !!!
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Peter Lugers all the way
Great call – any updates on this?
Thanks. Working on it now.
Wait, there was a call in this post?
@Pirate: arrrrrr- I told me mateys to be bearish.