Every Dog Has Its Day

The continued resurgence in the fast-casual dining/restaurant space is on display this morning, as Chipotle Mexican Grill follows-through higher up and away from its recent nemesis--The 200-day simply moving average. 

On the updated CMG daily chart, below, note after Chipotle's prior steep downtrend it went through a tedious churning process where the 200-day was a proverbial brick wall for price. 

During the winter months, however, price began to "eat away" at that yellow line, eventually overcoming it with demand in recent weeks. This type of price action is surely frustrating for just about all traders. But when it resolves, it can often give good insight as to the status of the chart. And, clearly, CMG is improving and showing more signs of life than it has in a good while.

In addition, combined with recent blog posts about QSR RRGB and other improved restaurants (fast, causal, or higher end), we can see the rotations taking place back into the consumer space as confidence in the economy grows. Similar comments apply to select retail plays.