Collusion at the Highest Level

In an otherwise moribund casual dining sector full of sickly charts like HABT NDLS and RRGB, among many others, one would almost surmise that collusion existed with respect to some of the consistently outperforming names. 

Specifically, CMG DRI MCD SBUX WING have led the charge and continue to sport sound technicals on virtually all timeframes. WING, in particular, seems poised for explosive growth across the nation, whereas CMG continues to execute an impressive turnaround plan, all the while DRI MCD SBUX simply execute at a high level. 

That said, the emergence of Shake Shack remains most intriguing to me.

SHAK could be part of this "collusion" gang, too (wink, wink, nod, nod) if the chart clears its 200-day moving average with strong buying energy, seen on the daily timeframe, below. SHAK remains heavily-shorted with plenty of skeptics regarding the higher price points for a mere burger and fries.

But there is no denying the brand strength is there. SHAK still has room for growth across the country in its own right, and could take the place of families opting for their higher-end burgers and fries in lieu of sit-down dinner at, say, Chili's. 

Either way, if the broad market firms back up into the second quarter of trading I have my eye on the best of the best casual dining plays, with SHAK threatening to join the elites above $55.