The restaurant group ($DJUSRU) is currently one of the hottest areas on Wall Street, aided and confirmed no doubt by the strong results released by Chipotle Mexican Group (CMG) last week. CMG broke out to an all-time high just before its earnings report and then accelerated higher on massive volume after the report. While SBUX doesn't look quite as strong as CMG on its weekly chart (not pictured above), I fully expect we're going to see a significant
upside surprise and, most likely, raised guidance. Wall Street is accumulating in anticipation of it, so the only question for me is whether we see a short-term "sell on news" event. If so, I'd use that weakness to accumulate.
Happy trading!
