New Lows For Starbucks Corp (NASDAQ: SBUX) Says Market Timer Frank Kollar
December 13, 2006 (FinancialWire) (By Frank Kollar)
Shares of Starbucks Corp (NASDAQ: SBUX) hit new correction lows on Wednesday. And that is saying something, considering Starbucks was at $40.00 before the decline in shares started back in 2006.
Having now lost almost 50% of its share value, traders may be looking at Starbucks as a stock that can’t go lower. Maybe it time to buy?
Maybe those traders are correct. But maybe they are wrong too.
No one can know how far down a stock will go until it has reached bottom and started back up. In Starbuck’s case, those who have held on now need almost a 100% gain just to break even. Ask holders of Nortel stock who rode it down from $90 a share to under $1.
Two months ago we wrote: “Starbucks is not a stock for traders looking for bullish gains. Those who take short positions should be watching the $25.22 level. If Starbucks closes below this support level in coming weeks, we will be watching for declines to at least $24.30 in short order, and possibly to $23.13.”
Today’s declines stopped at $21.88. No more forecasts. Just stay away from long positions until the stock reverses.
Fibtimer.com (http://www.fibtimer.com) currently has a position in Starbucks Corp in its Stock Timing Strategy.
Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.
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