Panera is a popular stock right now as it powers to new all-time highs. MaoXian chose PNRA for his chart of the day today. Garry sent me an email asking if I thought PNRA's run was over or if now is a good time to get in. You all know I'm going to give a nice political, non-committal answer like "I don't think the run is over but this isn't the best time to get in either." But seriously, that's my answer. It's tough to argue with the absolute strength , and especially the relative strength that Panera is showing. It's up about 22% this year versus a loss of 6% for the Nasdaq. I don't see any signs of weakness in the daily chart although the weekly chart has a couple. But while I like its strength, it is a little bit too extended for my comfort in buying right now. The $45 area looks like a good place to put a stop and it's just a little too far away for me. But it's not too far away from William O'Neil's suggest maximum stop of 8%. Ideally I'd like to wait for a dip to try buying PNRA but this looks like the kind of move that may not give such a nice dip right away. The intraday chart shows that there's minor support at 49, so that may be a good area to put a stop if you were jumping in right now.
