What Surprising Stock Is Making Multi-Year Highs?
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Price Headley BigTrends.com |
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An interesting name is showing up on screens for new multi-year highs, despite the market doldrums. The stock is not in a glamour sector such as technology or biotech.
It's (AAP), Advance Auto Parts. Take a look at the long-term monthly chart of the stock below:
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AAP Monthly Chart
You can see the shares were roughly in a 30 to 45 trading range for several years, but have broken out of this range in 2010. Just goes to show, there's always something in a bull market (and bear market), no matter what the broad markets are doing.
What are the fundamental reasons for the strength in the stock? Well, we are technical and sentiment traders, not fundamental analysts. But one can ascertain that the company is well run, and that in hard economic times consumers are putting money into fixing up their used cars, rather than buying new ones. And doing more of the work themselves, rather than going to mechanics.
What's the short-term outlook for AAP? Well, our short-term trade recommendations are only for our real-time premium recommendation service subscribers (call 1-800-244-8736 for information).
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Price Headley is the founder of BigTrends.com, which provides investors with specific real-time stock and options strategies and investment education to profit from significant market trends. Timer digest recognized the success of BigTrend.com’s investment strategies by ranking Price among the Top 10 Market Timers for stock market timing for the 2000 calendar year.
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