There were two immediate triggers to our McDonald’s (MCD)  trade.   First McDonald’s  reported less than expected same store sales increase.   Second in the premarket  McDonald’s broke the support at $78.82, its 50 moving average. The macro picture is not favorable for a number of reasons.   First McDonald’s  is feeling the pinch of higher commodity costs, second McDonald’s  is unable to increase prices to offset costs.   Third the overall market has pulled back but McDonald’s  shares are still near all time high.   And fourth McDonald’s trades at 16 time forward earnings, which is a premium to

We are taking partial profits on McDonald’s  (MCD) at $81.11.

We are lowering the stop zone on one-quarter of our McDonald’s Corp  (MCD) position to $81.42 to $81.62

McDonald’s Corp (MCD)  reported below expectation same store sales.  McDonald’s opened lower.   Now  McDonald’s is undergoing a massive short squeeze.   We will start scaling in shorts on the exhaustion of current upspike.   Please use your technical indicators to determine the exhaustion.   Suggested entry zone is $81.20 to $82.50.   Stop zone $82.61 to $83.26.   Obviously the higher the entry the better.   Target zone is $78. to $79.26.   Those not experienced in determining exhaustion of an upspike may consider attending one of our coaching seminars on the subject.   There is a waiting list.