The Shorts Are Trapped... and I’m Long

Cheesecake Factory (CAKE ) broke to all-time highs on Wednesday and held the move.

Its revenue crossed $1 billion for the first time in company history. Adjusted earnings came in at $1.44 against about $1.15 expected. Same-store sales grew 5.8%. Restaurant-level margin hit 20%, the best in a decade.

That's an earnings winner.

The stock jumped 12% on the results and is up roughly 90% year to date. But what I like is what happened after the gap. 

It faded back toward $99, sat there about a day, then pushed right back through $100. I love it when a stock can hold a big move. 

Short float is high here, around 19% of float. 

This is one of my favorite patterns to trade during the earnings season. I call them drift plays.