Friday, July 16, 2010

SBUX Watch

The CEO of ubiquitous coffee folk Starbucks Corp. (SBUX) gave an interview to Reuters where he said good and calming things about his company's global prospects.

Traders, a cynical bunch not known to be suckers for happy talk, slammed the stock with a bear signal and an intra-day price decline that covered 3.2% high to low. Put that in your cup and drink it!
SBUX $25.32

The switch of Person's Proprietary Signal (pps) to bear phase came after five days on the bull side, a period that saw a 5.3% gain.

SBUX hit a swing high this morning before declining, slicing through the 20-day simple moving average.

The pps is unsupported by the parabolic sar or the macd. The fast stochastic, however, gave a bear signal by moving from overbought territory back to the neutral zone, and the macd was moving lower although it still stood in bull territory.

Today's decline began at the open and the price fell all day. The stock shows little directional movement on the three-month chart -- it's more of a sideways meander -- and the bigger picture is a strong uptrend from the low set in November 2008.

SBUX announces earnings after the close on July 21. I was a bit surprised to see the CEO chatting up media this close to earnings, and I'm not sure of his motives.

Reversal Levels
  • $28.50, +12.6% (3-mo high)
  • $26.55, +4.9% (swing high)
  • $25.78, +1.8% (20-day ma)
  • $25.32 <== You are here.
  • $23.47, -7.3% (3-mo low)

The Great Reflation: How Investors Can Profit From the New World of Money
OK. The credit bubble burst. Housing, burst. Shockwaves reverberated. Markets collapsed. What lies ahead as we reemerge from the wreckage.

Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment. No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.
  • psar - Parabolic Stop and Reverse
  • adx - Average Directional Index
  • pps - Person's Proprietary Signal
  • ma20 - 20-day moving average
  • macd - Moving Average Convergence-Divergence
  • sto - Fast Stochastic
About the glance: The colors indicate the state of each signal.
  • trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
  • adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
  • psar, pps, macd: green for bull mode, red for bear
  • sto: green for overbought, red for oversold, yellow for the neutral zone.

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