SBUX, Starbucks (a sell).

sbux2011feb

This one was recommended very close to the low of $5. It is one of those stocks that one would normally not touch with a ten foot pole. Recently we suggested selling bits and pieces around $30. Today we would call it an outright sell.

There is no logic to this, just the desire to buy low and sell high. If we are in a bear market (in purple) the stock could still double top at $40 but after that it would drop like a rock. In the bullish case, (blue) , a wave 1 is complete,or nearly so and a wave 2 should follow soon. These typically retrace a substantial portion of wave 1 (we do not for a single moment believe this is what is actually happening!). Average the two scenarios  and the risk /reward is clearly against you.