Let's Hope Chipotle Doesn't Mess with Texas

Chipotle Mexican Grill, Inc. is among the most visible firms reporting earrings tonight after the bell. 

As you know, CMG's stock has been pummeled for quarters on end amid a maturing brand, disgusting sanitary issues, and its controversial new queso (see video, below). 

Nonetheless, the stock has ceased making fresh lows in recent months, currently nearing the top end of its (tight) range size August around $320. At issue is whether tonight's earnings will usher in a fresh leg down or instead prove to be an inflection point with the stock possibly already priced for disaster.

If the move is a reasonable push higher, I suspect a long trade can be taken after the initial dust settles. Back under $295, though, and it is going to be a tough sledding for longs.

As for the tape, the Dow's extreme strength continues to mask some sluggish action underneath the hood, which is keeping me from being too aggressive with fresh longs up here for now.