Outback: Australian for Relative Strength

Cheesecake Factory, Inc., is one of the more visible losers this morning, as the causal dining chain notorious for long wait times and heaping portions of high carbohydrate dishes updated poor guidance this morning. 

While CAKE is down more than 10% as I write this, we ought not throw the entire causal dining baby out with the tap water. 

Bloomin Brands, below on the daily timeframe, owns the Outback Steakhouse chains and has been on our radar for a while now. Note how price remains above its prior breakout (light blue line), and the sympathy selling to CAKE this morning is minimal, even if it is a bit more apparent in a name like TXRH. 

There are a few other restaurants acting well here, and we will continue to highlight them for Members in the event we see the market really draw a distinction this summer between the winners and losers in that industry. 

As for the market at-large, we have a relief bounce shaping up with tech. TSLA remains a death trap for shorts. But I suspect the Nasdaq will need to navigate the FOMC waters tomorrow before we can declare that even a near-term bottom is in place.