Weekly charts often give sound perspective on where a momentum stock is at any given point in time. As an example, looking at CMG‘s weekly above, there are only so many times that the stock could keep breaking higher after each slight consolidation. That is not to say that CMG has permanently topped. What it is to say, though, is that since the stock bottomed back in late-2008 the rubber band had become quite stretched. I had been cautious on CMG inside 12631 for several months, never quite getting the entry for a short I was looking for during the correction earlier this summer.
At the very least, I suspect the stock needs to reset its base count and flatten out for several weeks if it is going to resume another march higher.
in due time,all restaurants will be the best shorts,for they will all see the wrath of this years’ drought.make no doubt about it. it’s really quite funny how most of the talking heads are saying let it settle an jump back in,” because the price came in”. all i have to say is roflmao. thanks chess.
Chess, do you consider WFM as a late stage base failure as well?
Interesting..could very well be. Another one to watch.
Suicidal Salsa Splash?
Now there’s a ZH trade!