The daily chart shows there is still room to climb before CMG finds a stopping point. The weekly chart shows resistance will be around $320.
If the markets continue to rally from here, the race could be on to make at least a 55% retracement from the recent drop.
======================================================================================
8/31/12 - The "love" is lost on this stock. Even today's market wide rally could not bring this stock to a positive close. The reversal rally was immediately sold off and the stock stayed under VWAP pretty much the entire day. I will stop this trade out at a 50% loss.
=================================================================================
8/29/12 - Appears to be losing steam and looks ready to fall below my entry point. The challenge with this stock is it has/had massive institutional love, so when they decide to jump back in, the move will be large and fast. If I do happen to get short, my target price is $271.65.
===========================================================================================
8/23/12 - I have been watching this stock since the massive sell off looking for a sign of recovery; however, it just keeps slipping a little lower each day. I am long-term still bullish on this stock, but I also know it's a very hyped stock so when the love is lost, it can be lost forever with big fish money managers. After all, institutions own 97% of the stock, so when these elephants get out of the pool, you know it; and that is what happened back in July. Notice in the chart below it took all but 1 week to wipe out 13 weeks of solid upside—notice how it was 13 weeks...a Fibonacci number!
Because the top was a clear Bear 180 setup, I am looking for a Bull 180 now. The next earnings release is not until October 15th so I do not expect any type of rise in price until the end of September. For now, I am going to pick up a PUT if the stock slips below $290.00
These options are very expensive, but this stock moves enough to make up for the volatility premium (vega) packed in.
I am looking at the 290-295 puts:
Profits Up!
The donFranko