Beyond the Burrito

We have a mixed tape this morning, albeit one where bulls can certainly make a case for having the upper hand as the small caps and Nasdaq stocks outperform. 

As I write this, the mega caps in the Dow are red but, then again, much of that can likely be attributed to the extreme weakness in IBM post-earnings. "Big Blue," as it is known, was part of the Nifty Fifty back in Wall Street yesteryear, but is not quite the market bellwether it once was--At least not the point where stocks as a whole will react to a big move from the name, either way. And this morning is a pretty good example of that point. 

Also noteworthy is Chipotle continuing is resurgence over the last month or so. The downtrodden former leader is showing more than a glimmer of hope for bulls with its recent technical progress which we have been tracking closely.

On the updated daily chart, below, CMG holding back over $450 now after next Tuesday's earnings is likely to the be the next major test for bulls. You can plainly see the massive base bottom in play here, along those lines. 

With this in mind, there are a few other casual dining plays we are monitoring for Members, in the event this theme persists in 2017. Recall that PNRA was recently bought out, and others may be in the crosshairs of private equity and larger public firms alike.