I like to look at perfect charts. Why? Because they’re perfect. They show me what I should be looking for and what I should be trading and they train my mind for the subtle tell tale signs of greatness.
I also like to look at perfect charts and ask myself: why didn’t I catch that? What was I looking at that I wasn’t looking at this? What was I trading that I wasn’t trading this?
And here is one of those charts. $CMG. Chipotle Mexican Grill. It has been rocking out for over a year and it is going to completely change which stocks that I look at. Here’s the weekly chart:
This is a weekly chart. It’s going to change the way I trade because normally I look at low priced stocks most — we’re talking very low priced stocks — because that is what has worked for me in the past — but they are very dangerous.
You can only place a small amount of your capital in them and pretty much anything can happen to that capital due to frequent BK’s, delistings, etc. But to see a stock like this — rocket from $60 to over $300.00. Wow.
Sure, you can say it’s easy to tell after the fact, but trust me there was a tell tale sign all along — and all the way up. Want to know what it was:
That white line is the 52 week channel. Do you see all of those new highs printing. Again and again and again.
A lot of traders weary of new highs. But for what reason? Seems we all like to fade them. We all don’t trust them. We all don’t believe. But my motto is Breakouts, Continuations, New highs. That’s what strength looks like and it’s great to see this type of move possible in this type of stock.
My eyes have been opened!
Let the trends begin!