I don’t know why it is taking the rest of the coffee stocks to retreat, but GMCR’s selling period (ongoing since May) is a bad sign to get long toppy coffee stocks. PEET is about to reenter shorting range, but for a higher risk/reward play I have the young caribou, CBOU. I’m just hoping that the rotation out of this caffeine sector is not that much longer than I thought.
Another key sector to keep an eye on are the Exchange Stocks. For example, CME, aka, The Merc Boss, is just filled with strong holders, and hence, refuses to fall. Then you have positive signs like mergers and IPOs within the industry, which tells you money is flowing in, as well as speculative buyers. So, for a speculative play, I have GFIG as a long term buy. I’ll be getting in probably at the end of the week.
Overall, I’m looking to buy strength rather than oversold dips. Ha, loyalty.
If you enjoy the content at iBankCoin, please follow us on Twitter
I forgot to mention, CBOU’s stop loss is +.50 of top of the channel. So right now, that puts you at around 10.50. Or, whatever’s clevers.