This morning before the open I wrote about SBUX and posted a brief video of the stock. Support had been broken, the stock looked weak, and I was positioning myself in the morning for puts. A few minutes into the day I had my first position and I added to it late in the day and watched as SBUX took off on a strong almost 5% rally. The buy bots went nuts 15 minutes before the close in an effort to shake out every last short. This rally was not based upon anything other than more central bank manipulation, in this case more easing from the ECB, which is why I held my puts into the close.
Those puts I bought at $.86 and $.77 should be worth $3-$4 tomorrow morning. Like CMG the tremendous uptrend we’ve seen with SBUX is now broken. Next!
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