Shorts Get Black and Blue Steak, Even if They Didn't Order It

This type of market action will surely leave a few bruises on undisciplined shorts, who did not have have the humility to quickly fold their hands last week when they market gave most indications of just how truly resilient it was.

I recognize that this rally cannot last forever, and there is always the possibility for a devastating bull trap up here. But so far we are seeing a reasonable amount of a fresh long ideas still setting up, which means putting personal opinions aside and trading the actual tape is likely the first key in not taking any unnecessary large drawdowns via stubborn short bets. 

A name like Texas Roadhouse is, frankly, acting like best in class in the restaurant sector. TXRH has been marking time sideways for months now, all within the context of an overarching uptrend. 

Today's price candlestick, thus far today, is impressive and drives home the need to continually put in homework on a daily basis in this tape to ferret out leaders in sub-sectors, such as casual dining in the consumer space.

Note how a former leader like SBUX is notably lagging, but TXRH remains unperturbed and has the makings of a new leg higher if this breakout in the broad market holds true.