Didn’t Quite Make It Back to the Toilet …

I wrote a blog piece on October 13th about Chipotle Mexican Grill Restaurants (CMG) (click here).  I wrote it back then because the daily ATR resistance level had been broken and therefore I was wondering whether or not the stock was complete in terms of its downward pain.  I stated that despite the improvement in the look of the daily/195-min charts, I was going to hold off looking at taking any positional/swing trades in CMG until at least after CMG was able to take-out the relative strength indicator’s prior pivot high on the 195-min chart.  It never got that far, before the earnings report took out the legs from underneath the stock price today.

My title reference of “the Mexican Two-Step” back on Oct 13th refers to the common occurrence that Canadians experience when down in Mexico during the winter months … bugs/viruses in the water/food/drinks often show up in the need to spend significant time on the toilet.  Well, it looks like the holders of CMG going into the earnings report didn’t quite make it back to the toilet in time to avoid an accident!

I thought it would be useful to put up the longer-term charts, to show traders once again why I think you need to have the longer-term frame charts in sync with your intended trade if you expect to swing trade any stock nowadays.  Ignoring the bigger time can cause serious pain at times … Continue reading

Opening 5-Minute Candles …

Many retail traders make the mistake of trading at the opening of the markets at 9:30am thinking that they “know” what the markets are going to do for that day.  Occasionally, markets will trend from the opening tick, but that is the exception rather than the rule.  I have a screen on one of my 6 monitors that tracks the stocks I typically will day trade.

You can see that for the most part, waiting for the first 2 or 3 five-minute candles.  Back a few years ago, I wrote an educational PDF about how I try and trade the opening 5 and 15-minute time periods.  I will place it back under the Educational tab of my new blog site once again.  Here is a link to the PDF …

 

 

 

 

 

 

 

 

Cheers … Leaf_West