DENNIS GARTMAN: Exploding Chicken Chain Shares Stink Of A Stock Market Top

Shares in fire-roasted chicken chain El Pollo Loco have climbed 43% since its market debut Friday.

BI's Hayley Peterson has explained why some investors believe Loco, based out of Costa Mesa, California, could be the next Chipotle: It's same-store sales growth rate actually surpassed that of the burrito chain, and customers appreciate their large portion sizes.

But Tuesday, shares were down 13%.

In his note Monday morning, market guru Dennis Gartman says this smells like a top.

We are even concerned about the fact that the names of new offerings are looking "toppish" to us: Is the market really healthy when an IPO with the name EL Pollo Loco... the Crazy Chicken... is a blow-out success and trades to a swift premium immediately? Is this the sign of a market climbing a wall of worry, or is this the sign of a market already high upon the wall and tottering? We think the answer is rather obvious.

Loco shares were trading at around $31. Here's the chart: