McDonalds Corp (MCD)

[ITMS]

Nasty Reversal On McDonald's Corp (MCD) Seals Bearish Fate. Note This Chart...

McDonald's Corporation (NYSE:MCD) just put in a major top. Not only is trading above a 27 P/E, historically insane, but McDonald's Corp opened higher today and sold hard on volume. The jump this morning came after Cowen upgraded the fast food company and placed a $180 price target. Let's think about this for a second. In October 2016, McDonald's Corp traded at $110.00. Today it hit a high of $155.28. That is a whopping percentage gain of 41% in 8 months.

Think about that, after a 41% gain, now an analyst upgrades it? That is some sort of wacky joke. This is how tops are created. The reversal signals institutions are selling into the upgrade volume. I have a downside target on McDonald's Corporation at $134.25. This would be about a 50% retrace of the 8 month up move. Hold on and enjoy the ride. I am loving the short trade.

[img]http://www.inthemoneystocks.com/images/bryan/MCD%20%2006.20.2017.PNG
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Gareth Soloway
InTheMoneyStocks