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Cheesecake Factory Weakeaned by Economic Slowdown

 May 26, 2008 09:40 PM
 

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:

 

Rich
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