Trade Closed – CMG @ $708.30
January 14, 2015 MarcoTrade 3,886
I recommended buying Chipotle Mexican Grill at the $375 level back at the end of November 2014. CMG had a nice run, however current market conditions made me sell the stock today at $708.30. The trade had a profit of $33.30 per stock or 5%. I just do not feel comfortable holding stocks into earning following the ugly reversal from yesterday in the major indices and the overall weak action of the last few trading sessions.
It is a good time to sell some winners if you have them. This earning season is shaping up to be uncertain at best with high volatility across the board. It looks like 2015 will be another trader’s market – individual stocks might do well however it is not a given that the whole sector they belong to will move in one direction. Make a watch list of great high growth stocks and wait for the right moment to buy. Most importantly, be sure to sell when you have a decent profit. Do not follow the 20% profit taking rule; I believe 10% is more than appropriate in this market and if things get rough even 1% is better than nothing. Do not let a profit turn into a loss!