Monday, November 5, 2012

Goodbye Starbucks


I had a relatively successful trading day today. I watched Starbucks stock creep up higher after the opening bell this morning, but it ran out of steam fast and coasted for a while. Upon analyzing the stock with some technical, I grew worried that SBUX would not be able to hold its current share, so I ditched it. I started off by selling the 79 shares I bought on October 18, 2012 at $51.1 for a $236 gain. I then sold the 49 shares from October 19, 2012 at 51.2 for a $236. And I know you must be thinking I made an error, but I really did sell both groups off for exactly $236 gains. Starbucks proceeded to develop a small rally which tumbled by the end of the day to a share price below what I sold it at. I am concerned for the health of the stock. A pullback may be coming. I could see no point in recent history when SBUX gapped up and then didn’t fill the gap.
I then went ahead and bought 26 shares of TCBI. The stock was down 2%, and I finished the day ahead 2% ($50ish). I also bought 67 shares of SYY at $30.46. It was down 3ish%, and my position was up about .5%. Both stocks have been consistently strong in the past, and I could not help myself to some bargain shopping. 

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