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The Deipnosophist

Where the science of investing becomes an art of living

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Location: Summerlin, Nevada, United States

A private investor for 20+ years, I manage private portfolios and write about investing. You can read my market musings on three different sites: 1) The Deipnosophist, dedicated to teaching the market's processes and mechanics; 2) Investment Poetry, a subscription site dedicated to real time investment recommendations; and 3) Seeking Alpha, a combination of the other two sites with a mix of reprints from this site and all-original content. See you here, there, or the other site!

14 February 2005

Comments re CAKE from Dorsey Wright

Cheesecake Factory/CAKE ($34.10):
The main trend of CAKE is positive and the stock has three out of five technical attributes positive. The chart patterns show several classic patterns like:

  • A shakeout in September,
  • A triple top in November to complete that shakeout, and most recently
  • A double top at 33 to complete a bullish catapult formation.

In addition to completing this bullish catapult, the weekly momentum has flipped positive. Okay to buy CAKE here with a stop/hedge point at 29, a double bottom.


Comments above and chart (c) Dorsey Wright ~~~~~~~~~~~~~~~~~~~~~~~~~~~

Please visit a Cheesecake Factory near you (better, eat there), and note its attractiveness, its ambience, its food -- every item is yummy! -- and the long lines to get a table. This wait is true no matter which Cheesecake Factory you visit. I have had to wait at

  • The two in Las Vegas,
  • The one inside Macy's at Union Square in San Francisco,
  • The original location in Beverly Hills,
  • Newport Beach, Ca, and
  • Copley Place in Boston.

So here's the thing: what are the reasons you invest? Could these attributes (not solely the wait, but the other items noted above) be an indicator of sorts...?

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