While the trading world is euphoric about the Fed’s recent rate cut, there’s one important thing to keep in mind.
Usually, rate cuts mean we’re heading toward a recession.
Yikes.
There is hope, though, that the recession won’t be too bad. But that doesn’t change the fact that rate cuts are a tactic to mitigate a slowdown.
And if we get that slowdown?
Then we’ll definitely need tasty, reasonably-priced meals.
That’s where Wingstop comes in.
Here’s the chart:
It’s almost ready to move to new highs, and a break above $431.03 could lead to another big explosion.
And extra wings for everyone.
We’ll keep an eye on it.
Happy trading,
— Scott Welsh
