C9F trade ideas
CMG Potential double bottom, for risk lovers.In terms of fundamental analysis , even the most junior finance department student will suggest to avoid CMG 0.80% stock as its crazy P/E and looks like such a falling knife.
While higher risk makes higher return , and it did give a potential long opportunity.
In weekly chart, right here is the 0.618 retracement of the rally from 2008, and a daily double bottom is about to be formed.
My game plan is to wait for the double bottom to be confirmed ( close above 323 on daily chart ),
And put a buy limit at the 0.618 retracement of the neckline breakout.
Let's see how it goes!!
CMG Elliott Wave Leg 2 completeCMG has been following Eillott wave and New Impulse wave appears in progress. If if leg 3 follow's through expect higher over next few days and confirmation should break above upper trend line.
60m Bottoming Gartley on CMGA bullish Gartley has formed on CMG 60m- watch for further continuation to the upside before another selling opportunity. Given the scope of the downtrend over the last few weeks, I don't expect this to be a deal changer but it may be the first step to CMG flattening out and turning around.
Eat the Bad Burrito: Bounce PlayHistorical low RSI in recent period from a toxic news cycle about norovirus outbreak in Virginia.
Play the Bounce till RSI Recovers near 60-70. Couple of Resistance lines drawn to track price action.
Eat The Burrito.
CMG...40K of burritos???I sold a put this week in CMG as the stock is under pressure (again) and had wanted to jump in even earlier (where the green arrow is) but had not researched and checked into what was going on with the stock. While the stock did recover and have a decent swing, which would have allowed me to close......I am glad I waited as a practice for restricting those impulsive trades. I traded this name last year and had mixed results with my 401 getting decent gains and my reg-T taking a sizeable hit. I have the means to defend better this time and still hold min. 50% cash reserves. I like the stock and the company overall and have problems finding anything in the market that I don't find to be massively overpriced. Last year when I was trading CMG and selling puts weekly (pretty decent premium) I noticed that the float was shrinking but the short interest was the same. With only ~28M shares outstanding and ~4M short....this seems like it could have good potential to the upside. I got a little better trade placement by waiting but does not mean I won't get taken for a ride again, with earnings coming soon I will look to manage if the stock runs up a little into earnings or hope that IVR will stay high when/if it gaps down after earnings to help the roll. I probably should have waited and played the "after earnings" event but have been sitting on the sidelines this year with not many trades and need to take some risk in order to make some money.
cmgInteresting - retraced to .786 (chart on the left). Even if it goes lower I believe it has to rebound first. Still targeting .38 - .5 for a fast bounce target around $410.
