Trading A Double Shot of Peet’s Coffee & Tea
Back at the beginning of January, we brought Peet’s Coffee and Tea (NASDAQ: PEET) to the attention of subscribers to 7 Stocks You Need to Know.
7. Peet’s Coffee and Tea (NASDAQ: PEET)
Three straight selling days were enough to grant shares of PEET a ratings upgrade to 8 out 10, making the stock one of the higher rated names in today’s report. PEET shares sold-off by more than 1% on Thursday, closing in oversold territory for the second day in a row.
PEET bounced higher for two days, closing above its 5-day moving average for a gain of well over 2%. And traders were quick to take profits on that brief bounce, leading to another multi-day sell-off that we again alerted readers to just as the correction was reaching its most extreme levels.
6. Peet’s Coffee and Tea (NASDAQ: PEET)
In addition to closing lower for three days in a row ahead of trading on Friday, shares of PEET have traded lower for six out of the past eight days, ever since rallying to a new, intermediate-term high in late December.
Down nearly 2% in Thursday’s session, PEET has a neutral 6 out of 10 rating.
The stock closed lower again on Friday, becoming even more oversold and earning Peet’s Coffee and Tea a one-point ratings upgrade going into the weekend.
Buyers did not rush back into the market. But after a few sessions of sideways trading, Peet’s Coffee and Tea began to move, gather momentum and then breakout to the upside, eventually closing higher for four consecutive days to finish at new, short-term highs for two sessions in a row.
Based on the research in How Markets Really Work: A Quantitative Guide to Stock Market Behavior by Larry Connors and Cesar Alvarez (coming Spring 2012) and the massive stock and ETF database of PowerRatings, 7 Stocks You Need to Know provides a daily, objective guide to trading and active investing in volatile markets.
Available for free every evening before the market opens, 7 Stocks You Need to Know is a unique, idea driver that helps short-term traders and active investors alike see and trade the stock market the way professionals do.
Click here to get your free subscription to 7 Stocks You Need to Know.