"With Qdoba (JACK) breaking out, and CMG rolled over and under 28+ days of supply at 675-680.
If you can risk a rally to 682, just over a 2% rally, then I see reasonable chances for a drop to $625 or the middle of the gap from the July jump.
11:40AM EST 9/19/2014 Friday"
PS - It's always interesting to see when the stock chart gives a clue as to what the news is going to be. When you get this kind of technical setup ahead of news, it may really mean that top-notch researchers are right on top of traffic at CMG locations or that the information about each store revenue is getting leaked to an analyst or hedge fund and the word gets around the street. Perhaps the weakness in CMG was also a delayed reaction to the drop in the Russell 2000 Index this year as the strong momentum name stocks have been sold off down to more acceptable position sizes. To rephrase - CMG may have been suffering from money management strategies where portfolio managers were cutting down their positions in CMG since it was doing so well relative to the market. Good stocks can suffer this way as managers are forced to sell simply because the position size is now too large a percentage of their portfolio. Because of money management rules, good stocks can be sold off, which can make them look technically like shorts, but it doesn't always last long. There are plenty of reports out on the , which you can dissect. All the best, Tim