Casual Diner Indigestion:
Finicky consumers, most likely millennials, have been changing their eating habits for some time. It has affected the casual diners, some in a profound way. Some in the group have prospered while others have floundered. Below is a good illustration showing how some stocks are faring better than others. CMG and WING, have carved out nice niches, and YUM is on the ascent sniffing out par. Notice others have fallen by the wayside. JACK TXRH and DPZ (latter 2 fell on a strong tape Monday), all trading near 20% off their most recent 52 week highs, and are all near the UNCH line for ’19 thus far, leaving a bad taste in the mouth of long shareholders.
Building Group Building Confidence:
The homebuilding group was on a firm foundation in the past rising 43 of 63 weeks ending between 11/11/6-1/19/18 rising 83.6% top to bottom. They endured almost as hard a fall for almost all of 2018. The ITB is still 15% off most recent 52 week highs, and is higher 8 of the last 11 weeks, with 4 of the advancers gaining at least 4%. The Bollinger Bands are “squeezing”, which is implying a potential big move coming, the direction could be either way. Could another run akin to the 43 of 63 week win streak be in the cards?
Price has memory, and those willing to do the work and find names that have held prior breakout, preferably LONG bases, can often be rewarded handsomely. Below is an example, and the chart of SEAS and how it profiled in our 3/6 Consumer Report. Here is the WEEKLY chart and it is right near the suggested pivot and break above a downtrend line. People are paying for leisure in certain ways, as consumers are becoming more picky how they spend their well earned capital. Dipping a toe in the water here, could be a good idea, pun intended.