Starbucks Corporation (SBUX)

[BYUINSDER]

Starbucks Commentary/Analysis Monday

Given its option expiration week, just out of the money calls, premiums are up, that's sign of positive. $72.50 strike price, starts the resistance due to amount of open interest.

Now, general market, Nasdaq, $CPCE equity put call ratios, .72 currently and rising, which basically means, currently, there is 7 calls being bought vs only 3 put contracts. Now, add into the equation, Thursday, Investor Intelligence Sentiment Polling results, came in above the 55.80 reading, above the red line in the sand of 55.00 which has been major sell signal WARNNG of topping in the general markets. Especially, when, its comes in May month. Since, 2009 May has been crucial month for major reversal topping patterns.

Given, Tuesday, will be 21 trading day from pivot low in the general markets, odds tend to favor, very short term, bounce for Starbucks shares, here at $70.00 level.

Time Segmented Volume indicator is above zero line as of Friday trading action, which implies positive strength, taken along with Money Stream Indicator turning higher on Friday as well, both technical indicators, used by TC 2000 users, odds favor there is short covering action in play going into Monday option expiration week.

Observing the open interest of shorting, its not showing huge amount of open interest.

So, I'm not really sure, one can make strong case, based on evidence with short interest alone, Starbucks would bounce above say $72.50 on the short term.

Conclusion: based on my trading experience, 35 plus years, Elliott Wave type of trader, taught by Dr. Charles Chen Phd. Math who won Robbins Trading Championship three times, with 1100% 1200% 1300% gains trading SP 500 futures.

I'm willing to bet, Starbucks common shares, holds strong odds of moving higher above at least $71.00 per share.

Now, Trading vs Analysis is two different animals.

Using solid stop loss with your entry point.. Odds should favor the long side today.

Bearish case, Starbucks could continue lower to say $60

That's why, one should always use solid stop loss.

Currently, I'm only day trading, which means, I'm buying and selling on very short term time frame.

Given, the general markets, topping pattern.

I have no position with Starbucks, but might go long today.

Just for short term day trade.

GL Trading...