Disaster Sell-Signal Du Jour

• Posted by Robert Sinn
• on June 27th, 2012

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$CMG – I am always amazed when investors who own ultra high multiple stocks in highly competitive industries suddenly panic when an analyst suggests that growth may not be quite as robust as they had previously thought. Today’s action in CMG is a stark reminder that momentum is a powerful thing when its working in your favor but once it is lost it can be difficult to get back – while CMG technically hasn’t broken below support at 390 (3:30pm 6/27) the risk vs. reward of holding a long position here doesn’t seem attractive at all.

 

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