One of my favorite short positions right now is The Cheesecake Factory (NASDAQ:CAKE). For those of you not acquainted with this superb dining establishment, here’s a sampling of their wares along with calorie counts:
Oh, you’re still not full? How about a slice of their fabled cheesecake?
OK, that’s enough. Let’s look at why I’m short. Check out this analog:
Here’s a closer look.
My entry point was 31.83 and my stop is 30. I intend to hang on to this as long as possible – months, or even years, if possible.