Gas PRICE Premonition?
I am old enough to remember when the stock action of CBRL was looked at to give clues into how gas PRICES were possibly headed. The logic was that the vast majority, if not all of their locations, were located along I-95 and their success was seen in how strong their business was depending on the PRICE of gas. If they were low, consumers had more disposable income to spend on their journeys and vice versa. Could the stock be sending a signal once again that maybe gas prices are peaking? It does not mean that oil can not go higher but perhaps there is some relief at the pump coming soon. The chart rose almost 10% last week and this week is slightly higher, a good sign that it is stubborn in giving any of that move back. It is still lagging the casual diners, as it currently trades 18% off most recent 52 week highs. But it’s looking for its first 3-week winning streak in 9 months and the downtrend which lost value 15 of 19 weeks ending between 4/16-8/20 seemed somewhat orderly. Will the old way of looking at the gas PRICE relationship and the PRICE action in CBRL trying to teach us something again?