SBUX and DRYS Shorts Early On
UPDATE, 10:07 AM: No price volatility on SBUX, exited for a small profit at $20.18.
UPDATE, 10:24 AM: Market rolling, and DRYS with it, stopped out.
I got Starbucks SBUX short at $20.21 and DRYS short at $69.00 even as it opened at the gap as expected.
Starbucks short is based on the fact that $20 is the magic number of resistance as the stock gapped up heavily with news that its chairman is taking over CEO position. I got this idea from Jack’s Blog. My stop is at $20.41, looking for a move to $19.60, or 3 to 1 on my money.
DRYS is as you know based on the pair trade of DRYS and GNK, DRYS opened to the gap up just as I wanted and I got my shares short at $69 on the limit. The stock is currently trading under $68. From the post, My stop is $70.51 and my target is $61.
These are both low risk trades just like RIMM yesterday which yielded 2%. I will post charts and more details later on today.
