Additional References
August 2006, EWFF
I Get A Kick from Ultra Jolt
Back in 2001, The Elliott Wave Financial Forecast offered a two-pronged forecast for coffee prices, saying that the price of coffee beans was heading higher, while the biggest chain of retail java shops, Starbucks, was headed much lower. We were right about coffee, which more than tripled, but very wrong about Starbucks. Still, the historic link between the popularity of coffee houses and big bull markets (discussed in November 2001 EWFF) remains in place, as Starbucks accompanied the Value Line Arithmetic index and several global indexes to substantial new all-time highs. It has also turned down from a May 5 peak in a form that is consistent with a long term peak.
As EWT noted with respect to Microsoft near its all-time high in late 1999, major peaks are followed by societal attacks against the most successful corporate beneficiaries of a bull market in social mood. So it is now with the world’s biggest coffee chain. Starbucks is “in the sights of the so-called ‘food police.’ The Center for Science in the Public Interest plans to take action against the popular coffee chain” for the high-fat products it sells. energy drinks are another bull market beverage that is suddenly under fire. “energy drinks Are Fueling Concern,” says the June 19 issue of The New York Times. Energy drinks complemented the bull market peak perfectly. They first hit the market at the 1987 high, when Jolt Cola and Red Bull were introduced. At the end of the greatest top-building process in stock market history, drinks with even more bullish sounding names— such as Extreme Energy Shot, EndoRush and Ultra-Jolt—and four times the caffeine of a traditional bull market beverage, Coca-Cola (see December 1999 issue of EWFF), comprise the fastest growing segment of the beverage industry.
Now, check out the latest twist, which literally cans the cross-currents of an expiring bull and a revitalized bear:
Energy drinks Add Another Kick–Alcohol
—The Atlanta Journal-Constitution, June 11, 2006
It picks you up and slows you down at the same time, the perfect cocktail for celebrating the all-time peak in the Value Line and the initiation of a third wave decline in the S&P. In a collective toast to the greatest top of all time, people everywhere are knocking back Tilt, Sparks and Liquid Charge. How long can it be before we hear: “Bartender, give me an energy drink, but hold the energy?” Not long, we bet.
|