a lot of work goes into finding high probability set-ups … this was our last post on Coffee Futures and SBUX. I had been trying to find an end (not trying to call a top but simply look for a pattern) to the SBUX run. Ratio analysis was finally sealed the deal for me …
the cliff notes was that it wasn’t the price of coffee but the relative strength (COFFEE/SBUX) that had synced nicely.
the Coffee futures came down to the monthly node ID’d here:
and the result …
folks, this is a monster move! so what happened to the ratio?
the COFFEE/SBUX ratio before:
the COFFEE/SBUX ratio after:
here’s the charts of SBUX and GMCR
