I am cutting back most of my remaining 0.9% stake in O'Reilly Automotive (ORLY) on today's break of the 50 day moving average. ORLY does not work perfectly with technical analysis - about a month ago it fell below the 50 day moving average (bearish) but then gained it right back a few days later. But I'm going to stick to methodology and seeing some rotation out of the automotive replacement and repair market right now. I don't know what to read of it... maybe people fear the cash for clunker program will mean less need for their services.
Whatever the reason if there is not a close over $36.50 today we have a potential for a negative situation here. Considering the high is $36.39 for the day it is going to take a Friday afternoon special delivering by "the urgent buyer" as we saw 2 Fridays ago in the closing minutes to see that happen. I'd want ORLY to clear $37 and stay there as a sign of strength to get back my position.
Autozone (AZO) is also seeing the same situation...
Remember this market has transformed from one of individual names to one of ETF / sector dominance. As goes one, so goes almost the entire group in this era.
I'm seeing a lot of red in portfolio and watch lists so I am unclear why the market is flat - whatever is green must be things I don't follow. It's 3 PM - do you know where your shorts are?
Long ORLY in fund; no personal position
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