Earnings are due out after Tuesday’s close, and they are expected to show that Chipotle’s revenue growth has continued at a double-digit pace. This has given rise to a quite powerful short-squeeze over the last three weeks. The 15% rally, so far amounting to about $85, is impressive — the moreso because it has chewed through massive supply that had accumulated over the last year between 630 and 700. Even so, my hunch is that we should sell the news, since there will be nothing left to power the stock through the remaining supply just above $700. A Hidden Pivot at 699.36 that comes from the hourly chart should be used as a rally target for today (and a place to get short if you’ve been long on the way up), assuming the stock can past p2=687.05. Night owls can bottom-fish a pullback to p=674.74 (on hourly, where A=611.65 on 7/8), stop 670.63. _______ UPDATE (July 22, 1:19 a.m. EDT): Revenues announced after the close were slightly below expectations, sending the stock into spasms too wild for us to trade. The low so far is 605; the high, 692. I’d suggest that you step aside and enjoy the show. Bears seem favored to win this one, but the stock is obviously loaded with shorts. ________ UPDATE (July 22, 5:45 p.m.):
