{"id":189552,"date":"2023-04-28T14:50:47","date_gmt":"2023-04-28T18:50:47","guid":{"rendered":"https:\/\/ibkrcampus.com\/?p=189552"},"modified":"2024-01-24T12:13:52","modified_gmt":"2024-01-24T17:13:52","slug":"chart-advisor-restaurants-break-out","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/macro\/chart-advisor-restaurants-break-out\/","title":{"rendered":"Chart Advisor: Restaurants Break Out"},"content":{"rendered":"\n<p><strong><a href=\"https:\/\/www.investopedia.com\/contributors\/54841\/?utm_source=chart-advisor&amp;utm_campaign=fwd_chartadvisor&amp;utm_term=27774019&amp;utm_medium=email\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>By&nbsp;<\/strong><\/a><strong><a href=\"https:\/\/www.investopedia.com\/contributors\/54841\/?utm_source=chart-advisor&amp;utm_campaign=fwd_chartadvisor&amp;utm_term=27774019&amp;utm_medium=email\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>J.C. Parets<\/strong><\/a>&nbsp;&amp;&nbsp;<a href=\"https:\/\/get.allstarcharts.com\/?utm_source=chart-advisor&amp;utm_campaign=fwd_chartadvisor&amp;utm_term=27774019&amp;utm_medium=email\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>All Star Charts<\/strong><\/a><\/strong><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-thursday-27th-april-2023\">Thursday, 27th April, 2023<\/h2>\n\n\n\n<p><strong>1\/ Bearish Calls for Small Caps<\/strong><\/p>\n\n\n\n<p><strong>2\/ Restaurants Break Out<\/strong><\/p>\n\n\n\n<p><strong>3\/ Muni Bond Base<\/strong><\/p>\n\n\n\n<p><strong>4\/ Crude Oil Fills the Gap<\/strong><\/p>\n\n\n\n<p><em>Investopedia is partnering with All Star Charts on this newsletter, which both sells its research to investors, and may trade or hold positions in securities mentioned herein. The contents of this newsletter are for informational and educational purposes only, however, and do not constitute investing advice.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1-bearish-calls-for-small-caps\">1\/ <strong>Bearish Calls for Small Caps<\/strong><\/h2>\n\n\n\n<p>In yesterday&#8217;s note, we discussed the increasingly vulnerable position that&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/s\/small-cap.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8990940-20230427&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042723\" target=\"_blank\" rel=\"noreferrer noopener\">small-cap<\/a>&nbsp;stocks are in. With the&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/r\/russell2000.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8990940-20230427&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042723\" target=\"_blank\" rel=\"noreferrer noopener\">Russell 2000 Index<\/a>&nbsp;(<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=IWM\" target=\"_blank\" rel=\"noreferrer noopener\">IWM<\/a>) threatening to fall below its prior-cycle highs from 2018 for the fifth time in less than a year, sellers may be ready to take control.<\/p>\n\n\n\n<p>Relative trends are a valuable supplement for analyzing the absolute trend for a given asset. Here is what that looks like for small caps:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/1-20-1100x516.png\" alt=\"\" class=\"wp-image-189553 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/516;\" \/><figcaption class=\"wp-element-caption\"><strong>Source: All Star Charts, with data provided by Optuma<\/strong><\/figcaption><\/figure>\n\n\n\n<p>As shown above, the Russell 2000 vs.&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/r\/russell_1000index.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8990940-20230427&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042723\" target=\"_blank\" rel=\"noreferrer noopener\">Russell 1000<\/a>&nbsp;ratio plunged to its lowest level in over two decades today. Broad-based indexes like these offer some of the best representations of stocks categorized by&nbsp;<a href=\"https:\/\/www.investopedia.com\/investing\/market-capitalization-defined\/?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8990940-20230427&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042723\" target=\"_blank\" rel=\"noreferrer noopener\">market cap<\/a>, as they are the most comprehensive.<\/p>\n\n\n\n<p>If these new relative lows in small caps versus their large-cap peers hold, it could support a downside resolution in the small-cap Russell 2000 Index on absolute terms. This would be a very bearish development. With the Russell 2000 testing a shelf of pivot lows now, we could have our answer soon.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2-restaurants-break-out\">2\/ <strong>Restaurants Break Out<\/strong><\/h2>\n\n\n\n<p>Although U.S. averages continue to chop sideways, some areas remain resilient. This is particularly true for the Dow Jones Restaurants &amp; Bars Index as it reaches new all-time highs.<\/p>\n\n\n\n<p>As you can see, the index is breaking out from a basing pattern after&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/c\/consolidation.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8990940-20230427&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042723\" target=\"_blank\" rel=\"noreferrer noopener\">consolidating<\/a>&nbsp;constructively for over a year:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/2-20-1100x546.png\" alt=\"\" class=\"wp-image-189554 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/546;\" \/><figcaption class=\"wp-element-caption\"><strong>Source: All Star Charts, with data provided by Optuma<\/strong><\/figcaption><\/figure>\n\n\n\n<p>Buyers were able to absorb all the overhead supply and make a decisive upside resolution. As long as this&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/b\/breakout.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8990940-20230427&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042723\" target=\"_blank\" rel=\"noreferrer noopener\">breakout<\/a>&nbsp;remains intact, we could expect this group of stocks to outperform over the foreseeable future.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3-muni-bond-base\">3\/ <strong>Muni Bond Base<\/strong><\/h2>\n\n\n\n<p>Investors recently sold off equities in large quantities and ran to the safety of U.S. Treasurys as the banking crisis unfolded.<\/p>\n\n\n\n<p>It&#8217;s not just U.S. Treasurys, as all varieties of bonds have rallied. Here is the National Muni Bond ETF (<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=MUB&amp;hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8990940-20230427&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042723\" target=\"_blank\" rel=\"noreferrer noopener\">MUB<\/a>), a proxy for the performance of&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/m\/municipalbond.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8990940-20230427&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042723\" target=\"_blank\" rel=\"noreferrer noopener\">municipal bonds<\/a>:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/3-21-1100x561.png\" alt=\"\" class=\"wp-image-189555 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/561;\" \/><figcaption class=\"wp-element-caption\"><strong>Source: All Star Charts, with data provided by Optuma<\/strong><\/figcaption><\/figure>\n\n\n\n<p>MUB is carving out a year-long base below a well-defined former&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/r\/resistance.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8990940-20230427&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042723\" target=\"_blank\" rel=\"noreferrer noopener\">resistance level<\/a>. The buyer&#8217;s resolve becomes stronger with each additional test of overhead supply, increasing the likelihood of an upside resolution.<\/p>\n\n\n\n<p>If and when MUB breaks out to fresh 52-week highs, bonds in general could catch higher along with other long-duration assets.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-4-crude-oil-fills-the-gap\">4\/ <strong>Crude Oil Fills the Gap<\/strong><\/h2>\n\n\n\n<p>Bears are in control of crude oil futures.<\/p>\n\n\n\n<p>Notice the bulls failed to drive price above a key resistance level last week. And yesterday, price slid, closing a bullish&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/g\/gapping.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8990940-20230427&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042723\" target=\"_blank\" rel=\"noreferrer noopener\">gap<\/a>&nbsp;higher from earlier in the month:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/04\/4-20-1100x546.png\" alt=\"\" class=\"wp-image-189556 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/546;\" \/><figcaption class=\"wp-element-caption\"><strong>Source: All Star Charts, with data provided by Optuma<\/strong><\/figcaption><\/figure>\n\n\n\n<p>While the trend has been mostly sideways over the past six months, the bulls are now clearly on the back foot as the 14-day&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/r\/rsi.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8990940-20230427&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042723\" target=\"_blank\" rel=\"noreferrer noopener\">RSI<\/a>&nbsp;hasn\u2019t registered an&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/r\/rsi.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=8990940-20230427&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=042723\" target=\"_blank\" rel=\"noreferrer noopener\">overbought<\/a>&nbsp;reading in over a year.&nbsp;That\u2019s not a characteristic of an uptrend.<\/p>\n\n\n\n<p>With bears in control, our attention now turns to potential near-term&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/s\/support.asp\" target=\"_blank\" rel=\"noreferrer noopener\">support levels<\/a>.<\/p>\n\n\n\n<p>&#8212;<\/p>\n\n\n\n<p>Originally posted 27th April 2023<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In yesterday&#8217;s note, we discussed the increasingly vulnerable position that\u00a0small-cap\u00a0stocks are in. With the\u00a0Russell 2000 Index\u00a0(IWM) threatening to fall below its prior-cycle highs from 2018 for the fifth time in less than a year, sellers may be ready to take control.<\/p>\n","protected":false},"author":186,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21,14,15,17,18,6,8,9,22,23,26,3],"tags":[208,937],"contributors-categories":[13686],"class_list":{"0":"post-189552","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-commodities","7":"category-etfs","8":"category-fixed-income","9":"category-futures","10":"category-macro","11":"category-north-america","12":"category-region","13":"category-securities","14":"category-stocks","15":"category-technical-analysis","16":"category-text-articles","17":"category-traders-insight","18":"tag-iwm","19":"tag-mub","20":"contributors-categories-investopedia"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Chart Advisor: Restaurants Break Out | Traders&#039; Insight<\/title>\n<meta name=\"description\" content=\"In yesterday&#039;s note, we discussed the increasingly vulnerable position that\u00a0small-cap\u00a0stocks are in. 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