Did You Solve The Puzzle?

On March 7th, I presented a puzzle. I showed a stock with a high probability rebound pattern:

I showed how the stock has been steadily increasing revenues as well as earnings:

I showed an ROE that institutions love:

The number of funds holding this stock has been steadily increasing:

I detailed insider buying:

“On December 13th, one Director purchased half a million dollars worth of the stock (at $76.43 per share) and has held on to it.  Back on August 19th, another Director purchased a million dollars worth of the stock (at $70.60 per share) and has held on to it.

Many of the other Directors appear to have exercised stock options, which is typical compensation in companies like this. The unusual thing is they didn't immediately sell the exercised shares. That is not typical. As recently as February 2013 they were regularly exercising and immediately selling shares. But they stopped doing that later in 2013. They are holding onto their shares. It seems a number of Directors may have faith in the near future.”

And of course I focused on this stock because it has a strong seasonal chart pattern, a track record of likely recurring institutional participation in this stock, this time of year. Over the next 5 weeks, this stock has gained an average 8.0%, with gains in 18 out of 21 years:

Did you figure out the stock?

It is Starbucks, symbol SBUX.

Since the March 7th newsletter, just 10 trading days ago, SBUX has gained 5.4%. It paused briefly after its first leg up, respected its 50-day Moving Average on a low volume pullback, and a couple of days ago took off for the next leg up. Volume is strongly indicating the gains may continue for a while. The highs of November and December are likely near-term targets.

High probability setups on stocks with strong seasonal track records, and the best ways to trade them, are covered in every issue of Seasonal Forecaster.

Of course, there's much more you need to know and many more stocks you can capitalize upon each and every day.  To find out more, type in www.markettamer.com/seasonal

By Gregg Harris, MarketTamer Chief Technical Strategist

Copyright (C) 2014 Stock & Options Training LLC

Unless indicated otherwise, at the time of this writing, the author has no positions in any of the above-mentioned securities.

Gregg Harris is the Chief Technical Strategist at MarketTamer.com with extensive experience in the financial sector.

Gregg started out as an Engineer and brings a rigorous thinking to his financial research. Gregg's passion for finance resulted in the creation of a real-time quote system and his work has been featured nationally in publications, such as the Investment Guide magazine.

As an avid researcher, Gregg concentrates on leveraging what institutional and big money players are doing to move the market and create seasonal trend patterns. Using custom research tools, Gregg identifies stocks that are optimal for stock and options traders to exploit these trends and find the tailwinds that can propel stocks to levels that are hidden to the average trader.

 

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