Chipotle Mexican Grill, Inc.Panjang
BUY JULY CALLS ON CMG -- AND YES I HATE IT, BUT SEE CHART!!!
SUMMARY IN PARAGRAPH 3 HOLDS THE KEY TO MAKING THIS DECISION IF MY DETAILS AND OPINIONS ARE TOO MUCH TO WADE THRU. IF YOU ARE 100% TECHNICAL< JUST SKIP ON DOWN!
I wrote this over the weekend, so it pisses me off I didn't publish it...but this is a stock that has pissed me off for a while. I have been incredulous that a Mexican Food restaurant with a somewhat more limited audience than the burger joints can have been trading at 44X when the company itself is practically giving away meals to come close to its own over-blown target of 20% growth over 3 to 5 years. Despite Cramer's repeated excuses for company problems, CMG appears also to have a host of friendly funds that have been supporting the stock after every drop of a few percentage points - ONLY TO PUSH THE STOCK YET HIGHER AND HIGHER. Until Friday, CMG was up over 25% in 2017.
I sense opportunity here and jumped into this trade head first - but this is a trade for experienced traders who can manage risk positions, as there are numerous option strategies one could deploy IF HE OR SHE BELIEVES THIS COULD BE A REPEAT of Last October, 2016. I would suggest buying enough options to enable you to sell them in multiple lots on the way up - because this could last for hours, days, or weeks as the chart indicates The same funds that previously supported the company will likely be a smaller number, but the money is there to drive prices back up maybe 10% or so if we are correct.
The chart shows an identical 20% plus sell-off last October, and the key to this chart I believe, are in the absolutely maxed-out Chaiken money flows (CMF)(which I read in these extremes as an indicator that sellers are done for the moment) and the Bollinger chart (BBW) which measures the spread between the Bollinger lines.
Last of all, I have a chart set up with 5, 10, and 14 day RSI's sitting over a 10 3 1 stochastics -- and rarely do you see ALL OF THE RSI'S literally pinned to the bottom axis, with the stochastics flashing a buy signal.
Happy Trading!
I wrote this over the weekend, so it pisses me off I didn't publish it...but this is a stock that has pissed me off for a while. I have been incredulous that a Mexican Food restaurant with a somewhat more limited audience than the burger joints can have been trading at 44X when the company itself is practically giving away meals to come close to its own over-blown target of 20% growth over 3 to 5 years. Despite Cramer's repeated excuses for company problems, CMG appears also to have a host of friendly funds that have been supporting the stock after every drop of a few percentage points - ONLY TO PUSH THE STOCK YET HIGHER AND HIGHER. Until Friday, CMG was up over 25% in 2017.
I sense opportunity here and jumped into this trade head first - but this is a trade for experienced traders who can manage risk positions, as there are numerous option strategies one could deploy IF HE OR SHE BELIEVES THIS COULD BE A REPEAT of Last October, 2016. I would suggest buying enough options to enable you to sell them in multiple lots on the way up - because this could last for hours, days, or weeks as the chart indicates The same funds that previously supported the company will likely be a smaller number, but the money is there to drive prices back up maybe 10% or so if we are correct.
The chart shows an identical 20% plus sell-off last October, and the key to this chart I believe, are in the absolutely maxed-out Chaiken money flows (CMF)(which I read in these extremes as an indicator that sellers are done for the moment) and the Bollinger chart (BBW) which measures the spread between the Bollinger lines.
Last of all, I have a chart set up with 5, 10, and 14 day RSI's sitting over a 10 3 1 stochastics -- and rarely do you see ALL OF THE RSI'S literally pinned to the bottom axis, with the stochastics flashing a buy signal.
Happy Trading!
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.