Swing Trading Starbucks After Earnings | FOMC This Week
Starbucks Corp SBUX Stock Chart 7.29.19
Starbucks skyrocketed higher after earnings last week and sets up a new swing trade long.
But the main question I received this weekend was "Is it too late to buy?" Here's how to game for this new trade...
With the bullish gap and $8 + advance SBUX needs time to pause before initiating a new long. The trade expectation (odds of follow through decrease with each day) . But it's only one day you say? Well from a price action perspective, it's actually FOUR days.
The ATR or average true range comes in at $1.71. So the stock basically moved 4X what it normally does, so we need to treat a new swing trade, or intra day trades with a well-thought game plan.
This means I am looking for a 3-4 day pause for a new swing trade, and for day trades I am looking to buy pullbacks, not breakouts. Once the stock pauses, I am planning for an $8 profit target for the swing trade.
Pete
Starbucks' Digital Efforts Are Paying Off Nicely
Starbucks (NASDAQ:SBUX) shares surged this week, following the coffee giant's fiscal third-quarter update. Shares were up nearly 10% on Friday as investors digested the company's better-than-expected revenue and non-GAAP earnings per share during the period.
But there was another key catalyst for the quarter that investors shouldn't overlook: continued stellar performance from Starbucks' digital efforts.
fool.com/starbucks-digital-efforts
Five things to watch from this week’s crucial Fed meeting
Economists are broadly expecting the Federal Reserve to lower its benchmark interest rate this week by a quarter-point, the first cut in 10 years.
With an easing seemingly a fait accompli, economists are turning their focus to the future. How will Fed Chairman Jerome Powell and his colleagues communicate their plans?
Will they be hawkish and indicate a “one-and-done” rate cut? Will they leave the door open for another move in the fall? Or will they match the market’s dovish leanings?
marketwatch.com/crucial-fed-meeting
Former Fed Chair Janet Yellen says she’s in favor of an interest rate cut
Former Federal Reserve Chair Janet Yellen said she supports a 25-basis-point cut in the central bank’s benchmark interest rate, as the global economy weakens and inflation in the United States is lower.
“The global economy has weakened. I think partly it’s weakened because of conflicts over trade and the uncertainty that’s caused for businesses,” Yellen said at an Aspen Economic Strategy Group meeting in Aspen, Colorado, on Sunday evening.
cnbc.com/janet-yellen-favors-of-an-interest-rate-cut
Amazon sells a $19,000 do-it-yourself tiny-home kit that takes only 2 days to build — here's what it looks like inside
