It’s been a rough month or so for the big automotive outfits, with Ford (F – NYSE), GM (GM – NYSE), Toyota (TM – NYSE) and Carmax (KMX – NYSE) averaging losses around -10%.
But, there is one niche of the auto world that continues to do rather well: Car parts outfits have been swimming in profits.
Earlier this year, Bottarelli Research put LEAPS readers in Advanced Auto Parts (AAP – NYSE) for gains exceeding 104%.
Now, one of AAP’s peers, O’Reilly Automotive (ORLY – NASDAQ) is spiking on a strong quarterly report. Are these sudden spikes a fluke? Or, is there a way to predict when these niche companies are getting ready to break out?
Trading Tip: By applying our proprietary Signal Stacking System to ORLY’s weekly chart, we can see that ORLY was winding up like a coiled spring during the same four weeks that saw the big auto dealers losing power.
Note how ORLY shares broke resistance at $90.44, accompanied by confirming MACD and Accumulation/Distribution signals? While we can’t hear what they are saying in the board rooms of the big investment outfits, seeing these reactions (and the lead-ups) offers a look at the next big moves. And for now, auto parts remain red hot.
Another niche player is getting ready to extend higher. It’s looking for ways to clean up America’s dirtiest business — and it’s making a decent profit profit doing it. Learn how you can get in on this haul!
The same team that picked AAP has found a “Little Sin” stock that does even better when investors are totally stressed out. Our Stacked Signals are calling for it to rise 25% over the next eight to twelve weeks. Find how you can beat the market on a bad day!
