Friday, June 17, 2011

Starbucks (SBUX) Straddle opportunity 6/17

I know we dont highlight a lot of individual stocks, but heres the Starbucks daily chart to our left, and I think it could be ready for a breakout one way or the other. If I had to guess I think its going south as we form a descending triangle pattern. I think this is an attractive straddle opportunity with historical and implied volatility at relativly low values for SBUX. I'm going to put on an Oct straddle 35/36.

Dollar Index (DX) Finding support 6/17

The dollar index hourly chart to our left, and we can see quite a sell off over the last day and a half. It looks like though it will be coming up upon some support in the previous peak at 75.41 shown in green and the 61.8% retrace of the most recent upmove (@75.411). This coupled with the continuation divergence thats forming in the MACD as it pulls back well below the lows of the previous down peak leads me to believe this might be a good area for a rebound. Waiting for a candle stick formation or a small move up to confirm this support to add on to some of my shorts in other markets.

Silver Presenting Good Sell Entry Right Here? 6:50 AM CST 6/17

(Chart 1 - Silver 30 min zoom)
(Chart 2 Silver 30 min )

Silver formed a good shooting star on the 6-630 bar right off of the midpoint of the bearish orange channel.
We also broke out of the blue bullish channel to the downside.

Read my intermediate view on silver here

As to how to time it, I think here is a damn good entry point. (35.42 currently)
Just remember, you have to possibly stomach a move to just under 36, but I think you won't have to this time.... silver feels heavy this morning.