Leave the Gun, Take the Steak (Redux)

A few weeks ago we looked at the stretched firearms plays RGR SWHC, which we had been bullish on for quite some time inside Market Chess Subscription Services. However, after their respective earnings amid tons of seemingly short/intermediate-term bullish headlines about sales, the trade perhaps became too obvious, crowded, and extended on the charts. 

And, so, after SWHC printed a reversal candlestick on March 18th, we noted as much here in real-time to be on the lookout for downside confirmation. That follow-through has come in spades, as SWHC has printed two consecutive bear flags, highlighted on the first daily chart, below. I would still resist the urge to buy this correction, as with RGR, since they likely have a bit more correcting in the cards.

Alternatively, steakhouse chain TXRH, on the second daily chart, has quietly been improving. Even today, with peer RT getting clobbered after earnings, TXRH is still firming up and remains an actionable long idea if the market pushes on higher next week.