Want to trade Beyond Meat (BYND)? You need to look beyond the closing prices. (May 31, 2019)

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Beyond Meat ( NASDAQ: BYND ); I just want to look at this real briefly here this weekend. After the kind of week we have had, there are probably not too many people who are interested in thinking about the stock market, which is exactly the time when you should be thinking about it. Beyond Meat ( NASDAQ: BYND ) should have gone down; it should have gone down. It is vastly overpriced, blah, blah, blah, all of that stuff, but it’s not going down.

I mentioned in my Morning Note today, which I typically don’t even write anything on Fridays, but I said, “Look, everybody is lying their “asterisk” off; left, right, up, down. Donkey, elephant; blue, red. Money manager; bull, bear. It seems like everybody has an unhealthy relationship with the truth. The one thing that doesn’t have an unhealthy relationship with the truth is the chart.” There is no disagreement here, and if you are losing money on a stock then think about it this way, what’s happening is you are having a disagreement with the chart. And the chart is the only guy in the room who always tells the truth. Think about that for a minute.

So whenever you are looking at a chart and you are saying, “Well, that’s wrong.” That’s your ego talking. In Christian terms, that’s the devil whispering in your ear. You want to always look at the chart as always being the ultimate and absolute arbiter of what is true and what is not true.

What we are seeing here, if you look at this, look at the lows, look at the intraday lows on this chart. This was the lowest one. Here, higher, higher, higher, higher, higher, higher, higher. So as each day that has gone on the buyers have been getting stronger and stronger and stronger. Like they have been overpowering the sellers at higher and higher levels. So sellers haven’t had to really exert a lot of strength to push the stock down, there are too many buyers coming in. And then sometimes you have the low, the stock that closes lower than the open, we’ve seen this a couple of times. But I am thinking more about the lows here, the fact that these continue to be higher.

This can be a little bit of a concern, that today’s high was $104.55. Yesterday’s high, when everybody was just rabid, was 105.25 so this was slightly lower than the prior day; right? But that was right at the open. That was right at the open when the stock just squirted up during the opening, kind of the opening rotation. But since that time, what’s been happening on the hourly chart? This is what’s been going on. So this stock, you might almost think that it has stalled, and it has depending on what time frame you are looking at.

But here’s what I am telling you: If this stock pushes above 105.00 on Monday this could be front and center again on CNBC; they will be talking about it and we will be laughing because we will be long. If the stock breaks out above 105.00 you’re late but anybody who didn’t buy at 45.00 is late. This is a short squeeze going on so enjoy the ride. Buy that thing. Above 105.00, that’s when you buy and then you would keep a stop just a little bit below 100.00. I wouldn’t be looking at candlesticks I would be looking at the numbering system here; 99.90 that is where I would keep my stop.

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