On Friday 11/7’s Game Plan we observed Chipotle Mexican Grill Inc (NYSE:CMG). CMG is now just 4% off all time highs recovering nicely from its recent earnings disappointment of 7% on 10/21. The stock went on to recover some of those losses by the end of the week falling 4%. Volume was the heaviest since the week ending 1/18/13. CMG is now on a 3 week winning streak although trade has been soft. We recommended a buy stop above the 50 day SMA at 656 and the stock is UP almost 14 handles since. Keep an eye on its 681.90 double bottom trigger for a new entry or to add on to any position that may be currently held.
Stocks that can be bought as they take out their 50 day SMAs and then set up future valid base structures are CMG. CMG was a former best of breed casual dining play, which still is among the best but no longer the undisputed king. It has advanced 21% YTD and by 23% over the last one year period. From an earnings standpoint the action has been mixed with almost identical gains of 11.8 and 11.7% on 7/22 and 1/31, and losses of 7 and 5.9% on 10/21 and 4/17. The stocks last report on 10/21 brought CMG very close to the round 600 level and almost precisely filled in the earnings gap from late July. Lets look to enter with a buy stop above the 50 day SMA at 656 and then add to above a double bottom trigger of 681.90.
Trigger CMG 656. stop 634.55.
In Fridays 10/31 Game Plan we looked at Popeyes Louisiana Kitchen Inc (NASDAQ:PLKI). PLKI is higher by 39% YTD and this name has come a long way since trading with a 3 handle in November of 2008. The stock is on a 7 week winning streak (that means this name was UP every week in October during that rapid meltdown demonstrating excellent relative strength) and up 11 of the last 12. Volume has been firm. Notice how at the bottom of the cup base it spooned the round 40 handle very nicely. We highlighted an entry right at the 46.22 cup base trigger it took out originally on 10/28 and thanks to a very well received earnings inspired gain of 7% on 11/13 PLKI is now UP 15% from the pivot.
Stocks that can be bought right at their breakout triggers are PLKI. PLKI is among the casual dining group and is trading right at all time highs and up 20% YTD and by 6% over the last one year period. The group has plenty of winners including Jack In The Box Inc (NASDAQ:JACK), SONC and even lightly traded Nathans Famous Inc (NASDAQ:NATH) took out a nice flag pattern above the round 70 handle this week. The stock is up 8 of the last 9 weeks, ignoring the markets large fluctuations and higher by more than 3% this week as well. Its last earnings report the stock lost 3.6% on 8/21, but the prior release on 5/29 jumped 14.5% taking out a double bottom trigger of 43.54 best seen on its weekly chart. The stock took out a 46.22 cup base trigger on Tuesday and is back there now. Lets enter here.
Trigger PLKI here. Stop 44.45.
In Monday’s 11/3 Game Plan we examined Cracker Barrel Old Country Store (NASDAQ:CBRL). Anyone who lives on the East Coast and has driven the long trek from NYC down to Florida on I95 knows this name very well. The stock is up 9% YTD and sports a “tasty” dividend yield of 3.3%, pun intended. Incredibly this stock is up 14 of the last 15 weeks and just off all time highs. It is now resting just above the round 120 handle and can be bought right here as it trades just more than 1% above the 118.73 pivot.
Cup base trigger CBRL 118.73. Stop 113.10.