The Big 3: SBUX, XLE, AAPL

The latest episode of Schwab Network's Trading 360 dives into three high-conviction trades centered on perceived short-term weaknesses in three major stocks: Starbucks, XLE (energy ETF), and Apple. Don Kaufman, co-founder of TheoTrade, argues that recent market rallies—especially in tech and energy—are unsustainable, driven more by broad market momentum than fundamentals. He identifies Starbucks as a prime candidate for a 'bounce and fade' trade, betting on a continuation of its downtrend after a sharp rally. Similarly, he warns that the energy sector’s 40% year-to-date gain is built on fragile demand, with $4/gallon gasoline fears triggering 'demand destruction'—a key catalyst for a near-term collapse in XLE. Apple, meanwhile, faces a deeper existential threat: generational disaffection. Kaufman reveals a personal moment of alarm when his 13-year-old son questioned switching to Android, underscoring a broader trend of declining brand loyalty and technological stagnation—particularly in Siri’s performance. He positions a long-dated, wide-strangle put spread on Apple, betting on a breakdown below $250. Rick Ducat reinforces these views with technical analysis, highlighting key support levels, overbought RSI signals, and volume profile nodes that align with Kaufman’s bearish thesis.