“Used” Is The New “New”:
With all the recent supply issues, the automotive industry has been turned upside down. To this point, some have stated that in certain situations used cars would be worth more than new cars. Of course, the semiconductor problem has something to do with it as well. The auto parts plays have been acting well with AZO now approaching a double bottom pivot. ORLY is right at its own double bottom trigger of 608.32. PAG is now above a flag pivot of 92. Looking at names that actually sell used cars there are none larger than the chart below of CVNA. The stock is now 9% off most recent all-time highs and is higher by 4% this week headed into Friday. Its chart shows it gravitating toward a double bottom pivot of 363.19. Not all names in the space are behaving themselves, however. VRM, which we compare to CVNA on the ratio chart, is now 55% off most recent 52 week highs. It’s still below the nasty 2 week losing streak, weeks ending between 8/13-20 that fell by a combined 37%.