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I received an email from a strong technical analyst regarding coffee. He sent it to me last week. But what a move today. Just a shout out to Dominic G. for a great call.
However, this chart makes more sense when we see the affect on the Coffee shops.
The call was to go short coffee shops and long "Jo" which is the coffee tracking ETF.
So the related weakness in these companies is probably not the retail malaise, the lack of people shopping in the mall, or the general downturn in the markets recently. It appears to be a physical spike in their base costs.
Thanks for the mail,
Greg Schnell, CMT
