Today, CMG is in the spotlight. It beat earnings yesterday and was up 8% after horus. I wanted to buy this stock, hoping for some kind of brief pullback since being up 8% from yesterday's close would put it well above it's buy point of $262.88 of a cup without handle.
What I got was something I did not expect at all.
I set my alarm clock, got up 35 minute ago as I write tihs and set up my stock charts and screens and anticipated a launch out of its chart and.... CMG was down about 4%!!
So what happened? I quickly checked news reports and saw an analyst had actually downgraded CMG.
This is a good real world, real time scenario of a truly unique event. What does one do?
I toggled my screen to a 5 minute chart to watch the real time price action from http://www.freestockcharts.com/ and waited. As I did this, I opened my E-Trade account to get some pricing on the stock as well and time an entry if CMG reversed.
First five minutes, CMG still down....next five minutes, it went positive, finishing the 5 minute chart just below its buy point. Then the 3rd 5 minute bar showed a spike above the buy point and a quick dash back below it. Volume was already clocking in at over 1.5 million shares, demonstrating volume was there.
So, I decided the market had made up its mind and is kicking the analyst asside, at least for now. Therefore, I jumped in and bought some CMG around $262.92, right near the buy point.
You can watch this play out today right now. I will attempt to post a 5 minute chart from 7:14am.... as usual, this is not a recommendation to buy, just pointing out that CMG is currently breaking out and is still within an IBD style buy range.
Other stocks I'll cover shortly include: Priceline (PCLN), John Deere (DE) and Netflix (NFLX).
Five Minute is Above, Daily is Below
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