A Hard Habit to Break

A good deal of the restaurant stocks have been lagging the bull market for a while now. Surely, bears must have taken solace in having a corner of the market in their favor, without much in the way of hope for an inflection point.

However, we recently have seen technical improvement, complete with a vicious SHAK short squeeze higher, among other restaurants acting better, with a Famous Dave's surge today for the downtrodden barbecue chain. 

On that note, Habit is also a heavily-shorted burger chain with plenty of national growth likely in its future, in terms of new locations, like SHAK.

Unlike SHAK, however, Habit is not yet making the technical progress it needs to. Nonetheless, shorts may be feeling the heat at-large in the sector. And I therefore would be looking for a squeeze over $9.90 as the restaurant bear case should be a hard habit to break, despite consumer-related stocks among the best performers in the market over the last few weeks.