Chipotle Mexican Grill

A chart often will tell you to either get out or at a minimum tighten your stops long before the news hits the wire. As one can see, this issue has been in a long term uptrend that is parabolic. A vicious decline has emerged from 4/12/2012 that looks impulsive. 

Let's take a look at the news flow on this issue.

1. Street.com reiterates BUY Rating on 9/25/12 

2. Seeking Alpha reports Class action Lawsuit  on same date

3. Going directly to the company's website finds no immediately bearish news flow.

4.  Today, David Einhorn of Greenlight Capital commented on Mexican Grill Inc. ,"CMG is a good concept with good management but it is going from a great company to just a good company, Chipotle faces many challenges but its biggest challenge is Taco Bell YUM -1.44% "

The Wave Count

While w.(4) seems to be large given the w.(2) correction, the personality of the decline from 351.8 exhibits impulsive behavior suggesting at a minimum another test of w.(3) support, if not the downside target of $250.13 where w.(5) = .618{w(1)-w.(3) .

Best of Trading

======================================================================

ElliottwaveLive is not an investment advisory service or broker dealer. None of its contributors are registered investment advisors, licensed stock brokers or CTA's. The author may hold short term and long term positions in the futures, stocks and ETF's discussed herein. The author may also trade around those positions which may be in direct conflict with your positions. Complete trade disclosures of the contributor’s holdings are posted at www.elliottwavelive.blogspot.com. See Trader Disclosure. 

Trade at your own risk. The blog site, Newsletter and all other information, material and content accessible from this Site (collectively, the "Content")  provided herein provides the context for market analysis with respect to a market's, a security or a commodity's general position utilizing the Elliott Wave Principle. The Content contained herein are the opinion and general comments of the author and is based upon information that Mr. Sinibaldi considers reliable but neither ElliottWaveLive nor he warrants it's completeness or accuracy and it should not be relied upon as such. Mr. Sinibaldi or ElliottWaveLive (collectively, referred to as “EWL”) are not under any obligation to update or correct any content provided on this website. Any statements and or opinions are subject to change without notice. The content and comments contained herein neither purports nor intends to be, specific trading advice. It has been prepared without regard to any particular person's investment objectives, financial situation and particular needs. Information should not be considered as an offer or enticement to buy, sell or trade. 

A more and comprehensive Risk Disclaimer and Disclosure Statements is available within the left margin of this blog site.   

======================================================================

Fair Disclosure Notice: I do not have a position in any of the aforementioned futures markets or securities related to this article.