High Gas Prices = Less Disposable Income

Can anyone tell me who the hell eats at Bob Evans? Old people after Sunday services? I've often wondered how they stay in business when I never see any cars in their parking lot.

As for Cracker Barrel and I-Hop, they are roadside eateries. Think summer trip. Something tells me that after dad stops and fills up the minivan at $3.50+/gallon he's not going to want to stop again.

I admit to having a special affection for Cracker Barrel. Think sour dough french toast. That being said, I bet all three of these stocks are going to trade much lower. Haven't taken any action in these names yet as I remain cautious in initiating new short sales but I will be looking for an opportunity in the near future.

Back in the Saddle

Today was a nice uneventful day. I put a lot of money to work. Bought a few breakouts and initiated some modestly-sized shorts in financials. I remain net long but I'm really pretty balanced. Despite my success when the market has recently been crushed I prefer to see a more balanced market where one can play both sides.

Bulls remain in control, for now. Outright delusion is widespread amongst market participants. Seems unlikely to last very long. At some point soon the financials will lead us lower again. Also sniffing for short side opportunities in commercial real estate as those stocks have seen big runs based on the fairy tale that everything is going to be just fine. I continue to believe otherwise.