Check out Ronald McDonald’s moves! Here’s your trade on McDonalds (MCD) (December 09, 2016)
MCD SBUX SHAK SBUX MCD
I want to look at McDonald’s ( NYSE:MCD ) in this video, here’s why: We can see a really, really nice downtrend. Semi double top, just a lower high, but then we have had nothing but down moves here along the 50-day moving average. A breakout (just drawing the technicals here) and then finally consolidation right around the 200-say moving average. So your trade here is, don’t buy McDonald’s ( NYSE:MCD ) until it breaks above this high of 121.87 ( I will go ahead and set an alert here at 121.87 and I will get an alert when this puppy hits that level).
Now here is one of the reasons why I am looking at this. First of all I love it when a big cap stock like McDonald’s ( NYSE:MCD ) (love their breakfast burritos because I can get them anytime now). Anyway, I love it when this thing changes trend when large cap stocks are starting to be bought. But if we look at other stocks in the food space you see Starbucks ( NASDAQ:SBUX ) is working. So whether you like your McDonald’s ( NYSE:MCD ) coffee or your Starbucks ( NASDAQ:SBUX ) coffee you can buy the stock, it totally works.
And one other one here, this is a random one that I haven’t looked at in a long time and this long base will tell you why, Shake Shack ( NYSE:SHAK ). The stock has been trading right along the 200-day moving average for a while. A quarter of the float is short. This would be one of those stocks where I would be interested in buying it if the stock broke out above 40.00. Note I am putting question marks here. The reason is because I want to remind myself that just because I see an alert like this I shouldn’t just reflexively go, “Oh! Buy it!”
We want to be thinking when we are trading, but if this starts breaking out above 40.00, with this kind of short interest, earnings aren’t an issue, they are already behind it, this is a stock that can work. So Shake Shack ( NYSE:SHAK ), Starbucks ( NASDAQ:SBUX ) works. McDonald’s ( NYSE:MCD ), probably, in my view, best of breed. Or of course you can always hang out at Chipotle ( NYSE:CMG ). You are not going to make any money on the stock, but they make really good burritos.
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