Friday, April 13, 2012

Friday Morning Thread

In these sell-offs, I look for stocks that are weak, but also for stocks that are extra strong. SBUX fits in the extra strong category. I would NOT buy this stock right here, right now. It has just has 2 really big up days in a row. Note the volume on those up days. Big volume. Bigger volume than on the "sell-off" on Tuesday. There are very few charts which have this much action above the 10 day moving average in the last 2 weeks. The last time this stock was in touch with the 20 day moving average was March 7. I would look to buy it on any pullbacks and the closer to the 10 day moving average the better.

I let myself get stopped out of this stock when it barely went below the 10 day moving average last week - but I had a nice run. I would get back in on any pullback, as I believe SBUX has regained its mojo. This is one of Cramer's strong stocks he is pounding the table about right now, and I would rather have Cramer with me than against me on a trade. Earnings are Thursday April 26 after the close.