Thing Went South in a Hurry

Chipotle is understandable at the forefront of this morning's earnings movers, as CMG failed miserably in its attempt to turn a once-dominant brand around. By all technical accounts, this earnings move down may very well usher in a fresh leg lower as Chipotle experiences the "other side of the mountain" after a spectacular bull run from 2009-2015. Put another way, CMG is off my long radar for an indefinite period of time. 

However, another name worth noting is iRobot, which had been a short idea we mentioned to Members a week or two before earnings. Of course, earnings are often a good reason to reduce risk in any given trade, and we were not discussing IRBT as an earnings play, per se. 

But it is interesting to now see iRobot reversing down sharply after initial signaling higher after earnings. 

On the IRBT weekly chart, below, the momentum winner for for the last twenty months or so is now at risk of a CMG-like slide down the other side of its own mountain. Put another way, IRBT looks like a short again after earnings.

As for the market at-large, some more softness in light of the Dow divergence of late is enough to keep me fairly light in terms of net long exposure.