this run up is definitely running out of merits, and pushed up further by the first time shorters (ie laughter) who have no clue when and how to short individual stocks.
i just cleared my long positions for a nice 40% return in two weeks (thats a little less than $15,000. small fries to a big shot like laughter. but 15K from stocks in addition to the $4500 monthly job net income aint bad for a 25 year old).
NOW, i have entered short positions. ive begun dipping my toes into the restaurant sector. many of these stocks (CAKE, CPKI, RRGB) have HUGE short positions as of last month. Many of these shorties are inexperienced (ie Laughter) and lack the cahonies to know when to hold a good short, thus covering and driving up share prices because DRI posts better than expected (read, crappy, but not as crappy as being apocolyptic)
RRGB, CPKI, CAKE all exhibit declining comps. although lower commodity costs should help the bottom line, they will be offset by the continuing decline in comps, as well as the continuous increase in unemployment. CAKE, and CPKI particularly have a heavy exposure to California, which has its unemployment already above 10%!
learn to trade like me laughter, and you'll really be laughing it up.