Starbucks (SBUX) reported earnings yesterday. The earnings were good but the power in the stock move was based on the earnings call. Howard Schultz, Chief Barista for the investors brew, was glowing about the opportunities in Asia. Here is the chart.
Recently SBUX pushed the SCTR above 75 in December and then retreated. This push back up in January is bullish as it shows a confirmation of a very strong stock where investors are increasingly bullish on the story. If the broader markets hold up here, I would expect Starbucks to continue to perform well. A major gap to new highs on a high profile stock is usually bullish. Particularly when the SCTR can jump up above 75. Recent examples would include Walmart gapping in November after making a brief SCTR surge in October. Click here for an example (WMT) . Plan your trade, trade your plan.
Greg Schnell, CMT