• Dr. Kris
    Trade Alert! Bearish engulfing bar seen today in $SBUX chart. Long holders of this stock would be advised to take cover.
    4/16/12
    Reply (20)
    • OneLongTrade: Dr. Kris, do you think $LNKD has a bearish engulfing bar too? By the strictest definition, I'm not so sure, but it looks ripe for a pullback
      4/16/12
    • PainKiller: Plz. explain how selling would help? 25% tax rate, 8.95 commish, 8.95 to buy something else. would have to PLUMMET 4 a sale to make sense.
      4/16/12
    • Financial Insights: Painkiller - Most people have more than one share.
      4/16/12
    • PainKiller: Thanks for the insight, wise-guy!
      4/16/12
    • OneLongTrade: PainKiller, the idea behind bearish engulfing candles is that they point towards a large correction, could be upwards of 10%.
      4/16/12
    • phemale60: You're kidding? I just added some. My best stocks are down: LVS, WFM so can't pick out SBUX -- will take heed, however.
      4/16/12
    • OneLongTrade: For an example, look at a 3 month chart of SLW, bearish candle on Feb 29 with high volume to boot. I shorted shortly after, covered 33-34.
      4/16/12
    • PainKiller: 10 % is possible. 25% tax hit is prohibitive. Know a stock that would offset the loss in the amt. of time SBUX would take to bounce back?
      4/16/12
    • OneLongTrade: AAPL perhaps once this correction ends? Especially if they blowout another quarter? There's no guarantee SBUX overtaxes the highs soon.
      4/16/12
    • PainKiller: Sometimes, patience is better. of course, only if one believes in the company. I believe in SBUX long term. can't give uncle sam my $$
      4/16/12
    • OneLongTrade: Overtakes*. The tax hit is going to come whenever you sell. Otherwise you can just hold forever. That's not what traders tend to do though.
      4/16/12
    • PainKiller: Yea. but it goes way down after 1 year! If nothing else, I'd wait for that. But, I'm still learning, so please share your thoughts. thanks.
      4/16/12
    • OneLongTrade: Yeah I agree with the long term view, tax hit is more favorable. And SBUX is a solid company. Dr. Kris is alerting people with shorter time
      4/16/12
    • OneLongTrade: frames I believe. But I think there may be new legislation changing tax rates on dividends soon, they may change cap gains as well.
      4/16/12
    • PainKiller: Ugh, yes, I know & I'm thinking I need to find an expert to talk to about some changes I need to make. Thanks for your thoughts.
      4/16/12
    • Dr. Kris: Thanks for all comments. I just alert people when technical events are triggered. It's up to you to take your own action...or not.
      4/17/12
    • Dr. Kris: BTW, $SBUX off -2% today. Re: $LNKD--almost bearish engulfing yesterday. Had a real good one on 11/2/11, though...
      4/17/12
    • phemale60: Been wanting to buy SBUX since last year; finally bought some before reading Dr. Kris' advice. I must be jinxed! Lousy couple of days.
      4/17/12
    • Dr. Kris: So sorry, but my assessment doesn't mean the death of a stock. Please set a mental stop/loss and then act on it. 10% is a good starting pt.
      4/23/12
    • Dr. Kris: It SBUX falls below $58, consider selling some (or all) of your holdings. They need to beat $0.39 EPS on Thursday.
      4/23/12