I’ve included Chipotle in today’s list of touts because the stock reveals institutional mindset so clearly. DaBoyz love to own it because the company’s earnings are very predictable and keep rising. As such, there are no significant sellers of CMG, only buyers at all levels, especially on dips. We are going to try to short the stock anyway when it reaches the 748.60 target shown, which it will. We will also try to get long for the presumptive final leg up by using a ‘mechanical’ bid at 736.88, the secondary (p2) pivot of the pattern shown. CMG must exceed it first by at least four points, so stay tuned to the chat room for guidance when the time comes. ______ UPDATE (Sunday, 1:57 p.m. ET): Friday’s criminally inspired feint just before the opening messed up our plans, since it peaked somewhat shy of the 748.60 target where we’d wanted to get short. Instead, I’ll suggest using a larger pattern (see inset, a new chart) — first, possibly, to get long on a pullback to the green line (523.25); then to reverse the position at least temporarily by shorting p=761.49. The first trade should be initiated using ‘camouflage’ rather than ‘mechanically’, since bids there have already been stopped out several times in recent weeks. The relevant pattern can start with A= 705.17 (10/7), and it would become all the more enticing if C falls within a point or two of 705.17. _______ UPDATE (October 13, 7:03 p.m.): Back off for now, since Chipotle has begun falling without having surpassed early August’s key peaks. This is incipiently bearish, but we’ll give sellers another day or two to confirm it. If you are eager to get short before then, you should do so using ‘camouflage’ on the 5-minute chart.
