So far, so good on the Starbucks short I announced here on the blog and inside 12631 yesterday. I entered a starter-size position at $77.29 with a cover-stop above $79.
The head and shoulder potential top is in play, and today’s weakness is happening even as the coffee commodity is seeing some profit-taking after a sharp run-up.
If the move below $77 holds I am considering a fairly aggressive add. Otherwise, I may wait for $76.27 to be breached to add to the short.
As for longs, I am not inclined to add exposure here given the weakness and many reversals lower in the tape today.
Bulls, however, still have a few hours to pull off their usual strong close.
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Wow didn’t see they had a P/E of 250ish. Nice catch.
Just curious… what made you select 79 as your cover point? Just some cushion above the resistance around 78 or so?