Shake Shack is Spending the Summer at the Jersey Shore

After extensive renovations, a major rest stop on the Garden State Parkway in New Jersey has reopened with a Shake Shack location sure to take advantage of the many Jersey Shore beachgoers this summer, and beyond. The location is impressive in its strategic placement, as that particular rest stop is right in the heart of the Jersey Shore and on the way to other popular destinations, too.

SHAK remains a heavily-shorted stock which has steadily improved its technicals this spring. For the most part, the stock avoided anything beyond a quick shakeout despite the broad market correction in May. It is also worth noting that other fast/casual dining peers like CMG DIN DRI MCD WEN WING have largely avoided drawdowns, too, and remain outperforming charts in a mixed sector. 

Thus, I am looking for a short squeeze higher in SHAK, as I suspect the Jersey Shore rest stop location may be a microcosm of the sort of strategic placement the firm is focused on more than anything else.

As you can see on the updated daily chart, below, the gap up this morning out of a tight sideways base gives a new breakout a legitimate shot to set a squeeze in motion. 

Elsewhere, to return to another bullish theme, note the strength in solars again, be it like RUN or SEDG, or others we are noting for Members.