Originally Posted by Midpack
What do your charts say about Starbucks? I'm not a chartist, just wonder what a screaming short recommendation "looks" like.
A stock going down, down, down often times doesn't have a readable chart, however, if I had to put a number on a bottom, I'd say around $15.60 or so.
Charting isn't soothsaying. Many stocks have broken so far to the up or downside that a support or resistance is tough to find. With those stocks I merely stay away. I like the ones that show support lines and upswings on volume.
Fundamentally, Starbucks is like Lowe's was at one time (WAG also for that matter). Everyone loved them while they were building a new one on every street corner, but as soon as the building subsides and the companies actually stop looking like a smallcap or midcap growth stock, all those traders go running for cover.