Speaking of flying, here’s your trade on Wingstop (WING). (January 19, 2016)
Wingstop ( NASDAQ:WING ): I mentioned this over the weekend in our Strategy Session or our Weekend Update. The stock’s in a volatility squeeze. Lets look at the volume, it’s fairly light volume. If we get rid of this stuff you can see, the average volume is a quarter of a million shares, so don’t everybody go buy this all at once, I don’t like to move stocks. But what I’m saying is this, when a stock closes three days in a row outside the upper Bollinger Band, that’s a sign of strength, it is a sign of strength. This is a stock that’s under accumulation. It kind of makes sense when the stock, even where it sits right now, the stock’s down 31 percent from it’s “enthusiasm” high, as I like to call it, after a stock has started trading. It’s an attractive buy for money managers.
You know, just by definition of how long this thing has been trading, that it’s under-owned by institutions. So I’m suggesting this, you look to get into this stock, BUT in three days the stock’s rallied 7.5 percent. Volume has been on the decline a little bit, not a lot, but it has a little bit. So I would suggest waiting, letting this settle in a little bit. It could go a bit higher. If you get a bad case of the “can’t help its”, you’ve just got to own this stock, go ahead and take a little bit. Go ahead and buy a little bit of this stock, if you like it. Do you’re research, it’s not my trade, it’s yours. The stock is running along an upper Bollinger Band after one breakout from a squeeze here (let me draw it here, I’ll show you). Sideways consolidation. Boom! Breakout. Sideways consolidation. Boom! Breakout. This is what bases are made of, right here.
So you want to scale into this slowly. If the stock is down tomorrow, let it fall a bit, it probably will, but then take some stock. I doubt the stock is going to come down here. There’s just too much demand for it down in this area. So there will be enough buying to where you’re just not going to see the price fall that much, there will be so much demand for the stock. But don’t go chasing the stock either, because of the volume that’s drawing up right now at this level. So in some, take a little bit now if you like the trade but don’t take a full position because I promise you, as soon as you do, the stock will pullback to here and then you’ll be cussing ME out. I won’t know about it but you’ll be cussing me out. Don’t do that. Trade in fractions. Be bullish on this, but be prudent in your entries.
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