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Chris Vermeulen
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Chris Vermeulen the founder of AlgoTrades.net Algorithmic Trading Systems. This automated investing system is designed for individual investors and traders. He is also the editor of the TheGoldAndOilGuy newsletter which is designed for gold market traders providing quality ETF Trade Alerts,... More
My company:
AlgoTrades Algorithmic Trading Systems
My blog:
TheGoldAndOilGuy - Gold Market Traders
My book:
Technical Trading Mastery - 7 Steps To Win With Logic
  • 2013 Forecast – Tis The Season To Drink & Own Coffee 1 comment
    Dec 31, 2012 10:33 AM | about stocks: JO, GMCR, JVA, SBUX

    Coffee prices have fallen more than 50% since 2010 which can be seen through the coffee exchange traded fund symbol: JO. This investment seeks to replicate the returns that are potentially available through an unleveraged investment in coffee futures contracts as well as the rate of interest that could be earned on cash collateral invested in specified Treasury Bills.

    Weekly, Hourly and Seasonal chart of JO Coffee Exchange Traded Fund

    The top weekly chart shows my price targets for 2013 while the lower hourly chart shows strong on balance volume meaning big money is slowly building a long position in coffee. The small white chart is the seasonal chart of coffee futures showing prices historically rise from Jan - March, then a correction followed by another rally in to May.

    Coffee prices are still in a down trend but it looks as though the end is near and if played properly it could provide up to 100% return on your capital in 2013.

    (click to enlarge)

    Coffee Futures Monthly Long Term Chart

    This chart gives you a bird's eye view on where coffee prices are trading in the big picture scheme of things.

    (click to enlarge)

    JO Coffee ETF VS. SBUX Starbucks Share Price:

    Lower coffee bean prices JO ETF has helped lift share prices of coffee companies like Starbucks: SBUX, Coffee Holdings Co.: JVA, Coffee Roasters Inc.: GMCR, and PEET's Coffee: PEET. But cheap coffee may not be around that much longer and the lower earnings for coffee brewers may be closer than most may think.

    Follow my Live Trading Charts Here Free: https://stockcharts.com/public/1992897

    (click to enlarge)

    2013 Caffeine Conclusion:

    In short, I have been watching coffee prices for a bottoming pattern for months and I now feel it is getting really close to a bottom and it could be a great trade and investment in the new year. As for companies like Starbucks it will likely not have much of an affect on the bottom line until the second half of the year though it is something to keep an eye on during earning seasons.

    If you want my trading and investing ideas each week along with trade alerts for ideas like this then join my newsletter today: http://www.TheGoldAndOilGuy.com

    Chris Vermeulen

    Themes: commodity, coffee, investment idea Stocks: JO, GMCR, JVA, SBUX
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  • Getting interesting in here looks like this may be the final shakout
    8 Feb 2013, 05:34 AM Reply Like
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