BUT, how about we look more in depth at some ratios?
How about, SBUX relative strength compared to coffee futures?
Now, that is better. It’s not the price of coffee alone but the relative strength of SBUX versus the price of coffee. By using ratio analysis we can see that this is what causes the movements in SBUX. SBUX/COFFEE is a good indicator to manage risk, in my opinion. Is the ratio hitting some targets? Umm, yes.
Thanks for reading and remember to always invest and trade with discipline. Rock on, okay?
Twitter: @BartsCharts
Author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
