Chipotle's Dip: A Tasty Opportunity in a Turbulent Market

Is Chipotle's 25% dip a contrarian opportunity in a volatile market? [Trade of the Day Wake-Up Watchlist] "CMG Is A Contrarian Play Amidst Market Volatility." Nate Bear, Lead Technical Tactician, Monument Traders Alliance [Nate Bear] Stock futures are soaring this morning ahead of the FOMC announcement. But with so much volatility and uncertainty in the market lately, today’s watchlist pick from my [Daily Profits Live Portfolio]( is a change of pace from my usual selections. Instead of looking for strong trend stocks in a consolidation phase, I'm turning my attention to Chipotle Mexican Grill (CMG). Here's why: CMG has been in a downward spiral lately, down about 25% from its yearly highs. This decline comes despite solid Q2 2024 earnings reported last week: [NEW RESEARCH: AI Trading Tool "S.A.M." Could Have Found Profitable Trades With as Much as an 82% Win Rate (Over 5 Years)!]( [Nate with dog at Computer]( 5-year backtest shows that a revolutionary new AI-powered scanner developed by legendary trader Nate Bear could have found as many as 7,286 profitable plays (an average of 5 per day). See why traders who have early access can't stop raving about how powerful this new tool is. See the LIVE demo here... [>> Click to See the Demo <<]( - Revenue grew 18.2% year-over-year - Earnings per share increased 32% to $0.33 - Comparable store sales up 11.1% (8.7% traffic growth, 2.4% average check growth) - 52 new company-operated stores opened As of December 31, 2023, Chipotle had 3,437 restaurants and plans to add 285-315 new locations in 2024. However, they did observe a slowdown in comparable store sales growth to 6% year-over-year in June 2024. So why do I like CMG now? A couple of reasons: First, it's not in the volatile tech sector. It's not in the volatile tech sector. With tech earnings and the FOMC announcement looming, it's challenging to put on an options swing trade in tech right now. Second, Chipotle seems to be dislocating from the rest of the market, potentially less dependent on FOMC decisions or tech earnings than other stocks. Not only that, but it has already had a massive pullback. And based on yesterday’s trading action, the RSI seems to be turning upwards. An upward turn in the RSI is often interpreted as a bullish signal, suggesting that the stock's price may be gaining upward momentum. If the RSI has been in oversold territory (typically below 30) and starts turning upward, it could signal a potential reversal from a downtrend to an uptrend. Despite that, picking bottoms is not a game I like to play. It’s either going to work or it’s not. If it doesn't, this isn’t the type of play you want to fight. Action Plan: I got long via call options in CMG in my [Daily Profits Live Portfolio.]( Since the stock has already had earnings and not much is expected out of it, the options are dirt cheap. I’m setting my stop right below $50 and am playing for a bounce back to $60. If you’d like to learn more about [Daily Profits Live, check this out.]( ["Zero Day Options" Overnight Windfalls]( Forget the Frustrations of Day Trading... Target Up to +383% OVERNIGHT With This Dead-Simple ODTE Secret Instead! [🚨 New Trade Goes LIVE THIS TUESDAY at 2 pm 🚨]( [Monument Traders Alliance] Monument Traders Alliance You are receiving this email because you subscribed to Trade of the Day Wake-Up Watchlist. To unsubscribe from Trade of the Day Wake-Up Watchlist, [click here](. Questions? Check out our [FAQs](. Trying to reach us? [Contact us here.]( Please do not reply to this email as it goes to an unmonitored inbox. 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