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Cheesecake Factory Weakeaned by Economic Slowdown
By: The Bull Trader   Monday, May 26, 2008 9:40 PM

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Well, how about shorting cheesecake factory, symbol : CAKE.  The stock has been weakeaned by the overall economic downturn.  Less people going out to eat due to higher gas prices and those chosing to dine out not going upscale restaurants is presumably the theory.  Technically, the stock looks like its going lower.  It recently gapped down on relatively high volume.  The ADX which measures the strength of a trend is very strong.  MACD trending downward.  Overall, I think shorting CAKE may be a decent trade in the coming weeks.  Here is the six month chart:

 

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The above story is the opinion of the author only and it does not reflect iStockAnalyst opinion. Further, the author is not personally advising you regarding the suitability of the story for your investment needs. In no event iStockAnalyst will be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from or arising out of, or in connection with the use of this information. Please consult your investment advisor before making any investment decision.
  
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