MCD or the yellow arches, Jan 2010.

This one has eluded me for some time. I was reminded of it last weekend when after driving for a good many hours my wife and I were starved so we went to McDonalds. For two Agnus burgers, two french fries and two cockes (that we did not want) the price was about $18. Fortunately my wife had a few coupons to cut that down a few dollars. The setting was comparable to a jail cafetaria.    When the kids were small you could do this for 4 at 1/2 the price!

    Anyway the stock lost about 80% in the 2000-2003 stock market drop , but has been totally impervious to the more recent events. That is it has traced out a very clear triangle over the last year or so. I expected it to crash but made a point of pointing out that triangles can reslve themselves in EITHER direction. Now we know it was up. We also know that the next move is down. The high should be reached soon at $66 to $68 after which it should drop to $44 and perhaps to $10 ( a previous 4th wave!)

I like the $4 up $20 down (perhaps $50 ) ratio for the risk/reward profile. Options are best for this one and even though I expect all this to occur fairly soon (see and MACD) I would still go out about 6 months. 

mcd jan 2010 2 mcd jan 2010

Remember you can enlarge the graphs by clicking on them.