Green Mountain Coffee (GMCR) – 09-30-2009

September 30, 2009 at 10:28 pm · Filed Under Bearish, Bullish, Growth, Value 

GMCR Daily Chart

GMCR has been a super hot topic amongst people talking growth stocks for a while now.  They also had a breakout that’s been holding up over the past few days, but the volume gives a conflicting signal.  I believe this stock is getting overbought and will eat it hard on the correction.  Normally I like to play stocks like this with triggers on both sides, playing the upwards momentum on short term trades of the breakouts, but trying to catch the crash after it starts.  Note that the key to this strategy is catching the crash AFTER it starts since you will get eaten alive trying to trade against momentum this strong.  With the volume dwindling the way it has on this one, I’m guessing the crash is close enough to start paying attention though. 


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