Heating Up in the Early Going

Chipotle Mexican Grill continues to be a relative strength name among liquid, marquee issues. The stock was a name we have been looking at for a while now as it largely based sideways even as other marquee names suffered technical damage, seen the first weekly chart, below. This morning, CMG is off to a hot start. If the stock can now base out above $680 into 2015 it is hard not to see this one being a top five market leader if the bulls come out of the gates running. Of course, the main issue to conquer is that it is unlikely CMG can lead an otherwise broken market, if we see a broad sell-off to begin 2015. But Chipotle is certainly worth keeping on watch. In addition to CMG, UA is also a similar chart to watch among premier names. YELP is a different story--A beaten-down junior marquee issue. On the second daily chart, below, the stock has already crushed many longs on the way down. It may now be so bad that it is good for a quick pop, especially if it can clear that 20-day simple moving average (orange line).