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$52.50-(A key support level for Starbucks).As I noted in the above chart, closing below the 100 WMA again is a troubling sign for the bulls. I am watching the 52.50 level. If that level goes, the 200 WMA is up next at ~47.50. The last time Starbucks fell below the 200 WMA was in 2007. It fell another 70% bottoming out around $4. Granted, that period was an extreme event and the company is more mature and in a better position today. I am in now implying it will fall 70% Just pointing out long it has been since the last move under the 200 WMA. Now, a look toward some data. Same store sales is slowing. See image below. assets.bwbx.io Jennifer Bartashus, an analyst at Bloomberg Intelligence notes- “Starbucks is really starting to hit the saturation point in the U.S.,” she said. “The question with that is how are they going to continue to grow same-store sales.” To achieve growth, it will mean growing same store sales at a better rate and pushing into new markets. Per Bloomberg again- "Starbucks has been trying to improve its food in the U.S. to lure more customers, especially beyond morning hours. This year, the company is adding fancier items to its menu, including Sous Vide Egg Bites and a gluten-free breakfast sandwich. To attract the on-the-go crowd, Starbucks also is expanding its snack-based meals called Bistro Boxes." In other words, they are expanding to other categories besides coffee(line extension). They are hoping to gain a bigger share of the customer's wallet while they are in the store. Will it work or could those resources better be used elsewhere? The jury is still out. I have no position in this stock but will be watching the levels noted on the chart closely. Let me know what you think. Agree/disagree? Would love to hear your thoughts. 2nd try, first chart was off:)
NASDAQ:SBUX
by CalebDismuke
$52.50-(A key level of support for Starbucks).As I noted in the above chart, closing below the 100 WMA again is a troubling sign for the bulls. I am watching the 52.50 level. If that level goes, the 200 WMA is up next at ~47.50. The last time Starbucks fell below the 200 WMA was in 2007. It fell another 70% bottoming out around $4. Granted, that period was an extreme event and the company is more mature and in a better position today. I am in now implying it will fall 70% Just pointing out long it has been since the last move under the 200 WMA. Now, a look toward some data. Same store sales is slowing. See image below. assets.bwbx.io Jennifer Bartashus, an analyst at Bloomberg Intelligence notes- “Starbucks is really starting to hit the saturation point in the U.S.,” she said. “The question with that is how are they going to continue to grow same-store sales.” To achieve growth, it will mean growing same store sales at a better rate and pushing into new markets. Per Bloomberg again- "Starbucks has been trying to improve its food in the U.S. to lure more customers, especially beyond morning hours. This year, the company is adding fancier items to its menu, including Sous Vide Egg Bites and a gluten-free breakfast sandwich. To attract the on-the-go crowd, Starbucks also is expanding its snack-based meals called Bistro Boxes." In other words, they are expanding to other categories besides coffee(line extension). They are hoping to gain a bigger share of the customer's wallet while they are in the store. Will it work or could those resources better be used elsewhere? The jury is still out. I have no position in this stock but will be watching the levels noted on the chart closely. Let me know what you think. Agree/disagree? Would love to hear your thoughts.
NASDAQ:SBUX
by CalebDismuke
$SBUX Continues to Slide$SBUX continues its slow decline through 2016. After an incredible run in 2015, this is to be expected. Although $SBUX is still maintaining its dominance in the coffee world, it is at the end of its massive growth cycle. I expect growth to be incremental in foreign countries and China to determine the course of the stock over the coming months/years. Until it sees a turnaround in volume and RSI...keep this on the long term watch list. www.trendyprofits.com
NASDAQ:SBUX
by trendyprofits
Correction or sideways?Market taking a breather after the recent rally. I would think that the market is taking a break from the rally for now. Corrective levels below are the 7 day MA at 164ish, 20 day MA at 158 and 100 day MA along with the lower line of the upsloping trend channel. Option vol went out on the move, but commercials seems to be selling as physical prices in Brazil are as high as ever and provide good selling opportunities for commercials. IMHO, downside 1x2 calendar spreads or short call spreads are options.
K
by mjhillpp
Things point to 140 for now (2nd month continuation)Looks down to the 140 area for a test. However as long as the orange or blue trends hold, the upwards trend is still intact IMHO. short call spreads above 165 in Dec or January might be a good idea. I would buy any puts as downside seems limited for the moment and option volatility might decline during a sell off diminishing returns on long option strategies. 1x2 put spreads 10 to 15 cents wide for flat selling the 2 buying one over two month could be good IMHO
KShort
by mjhillpp
2