Remember when Outrage Twitter was running wild with conspiracy theories about Chipotle poisoning its customers and the business was doomed? That was fun. You know who had more fun? Long term investors who turned off the “news” and stayed the course.

Earnings are coming up that may serve as a catalyst to launch the next leg higher in shares of $CMG.

There is potential for a 10-to-1 payout if we nail it and $CMG has a monster gap along the way to get us to and through our price target. But our aims are a bit more modest. We’re simply looking to capture some of the barbacoa in the middle. [Read more…]

One of the most powerfully bullish patterns that I know involves an instrument which gaps higher on explosive volume, builds on those gains for a day or so, then spends the next week or two consolidating those gains on declining volume. This price action tires out the fast money that entered the game on the breakout and attracts opportunistic bears looking for a reversion back to the mean. The chart pattern begins to resemble a coiled spring. And when it Pops!? — the next move can be powerfully higher and sustainable.

We’ve got a situation like this developing now. [Read more…]

One of the more compelling opportunities in the All Star Charts Q3 Playbook centered around the Rails sector. Several stocks there are setting up for big moves, and with an accommodating economy, I don’t see how rail stocks won’t start participating soon. [Read more…]

I love getting involved in stocks breaking out to new all time highs. I love it even more when I can leverage into the play with long options when volatility is low. The bang for the buck if you get hold of a big mover is so much more powerful.

We’ve got one of these opportunities setting up in the financial sector and it has my attention.

[Read more…]

In last night’s All Star Options Conference call, JC laid out a case for why interest rates look to be at an inflection point — the takeaway being that a big move is likely to happen from here. The problem is, we’re just as likely to rise as we are to fall. What to do?

While this type of directional indecision is likely to give pause to a straight equities player, we options traders can position ourselves to profit in either direction without having to pick one!

[Read more…]

Stocks are set to rip higher at the open today, which makes it tough to buy into some bullish opportunities here as they all will be running away from us. However, there is one name setting up where today’s enthusiasm should help us push through some minor resistance and get us targeting new all-time highs that were last seen back in September. [Read more…]

If broader markets are going to continue higher, we’ve got to expect the banks to participate and even lead. If that’s the case, we’re limiting our risk and betting on one of the bluest of the Blue Chips breaking into blue skies. [Read more…]