Rob Reviews CMG Swing Trade Thoughts And His Market Strategy For Tomorrow

Welcome back everyone!  Let’s talk about today, going into Friday, before talking about Chipotle.  We closed well off the highs in today’s session on the S&P, RUSSELL, and DOW.   The NASDAQ did very well.  We had a lot of earnings coming out this evening.  There is a lot of going on in Europe that are leading to some pretty impressive moves this morning.

We still have these massive accumulation bars.  That is what I talked about with you guys yesterday. With all of these accumulation bars, I will be looking to see if we can get back above.   We did do that on the DOW, NASDAQ, and DAX.  There was a focus on the long side on the DAX this morning.  I want to see how we respond to this proven area of accumulation.  I want to see if we can get back above today’s highs.  The DAX is pretty extended.  However, it is very news driven right now.  I want to see if we can get through the highs of today for long side trades.  If all of them are down below the speed lines, I will look for short side trades.  The reality is that those are tough trades in an intensively area of accumulation.  You can still get those nasty pull backs against you, even if you are right.  Watch out for those.  Wait for some retracements and resumptions before moving on for the next trade.

That ties in very well with my thoughts on Chipotle.  I have been a raging bear on Chipotle for a long time.  They have had multiple incidents of food poisoning.  We are talking about a stock here.  It isn’t a 15 dollar stock either.  This is a 300-400 dollar stock.  There just isn’t much room for errors.  They have not instilled confidence in me that they have fixed the issues.  If I am not willing to take my family there, they have lost a lot of people’s confidence as well.  That bodes very poorly.  There were sell signals after sell signals.  There were inventory retracement breakdowns and such.  There were plenty of continuation trades to the downsides.  Now we finally get this big gap down.  It would make sense why some people would look for bottom fishing here.  Yes, in an average stock I might look to bottom fish.  With my lack of confidence, I don’t know if I will ever go back to Chipotle.  I personally just don’t have much trust in the management.  I am going to abstain from trying to be a bottom catcher now.  I would rather look to see if it gets a short term reversal because that could possibly offer another roll over opportunity.  I don’t have many friends that are saying that they can’t get back to Chipotle.  That is just too high of a stock.  That kept me out of being a bottom catcher through this entire pressure.  The people who are trying to bottom catch the most probably did it above.  They could be underwater right now.  They are the ones hoping for a bail out.  Now is the time that a bail out because of the big push down.  We have the kick off bars off above and the blow off bar down below.  It has to hold 270.  If it fails to do that, you can ultimately see even lower prices than now.  This is a very high and richly priced stock.  I don’t plan to invest or go there any time soon.

You now have heard my thoughts on an intraday and investment basis.  You guys have a great night and I look forward to seeing you all in the Live Trading Room or in tomorrow night’s videos.

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