US car production is coming off of its low back in 2009 and has increased to 3.02 million units in August from 2.62 million units in July. Still 3 million units below average but we are seeing an increase. Low interest rates are still making auto loans affordable . However, New passenger car registrations are down to 501.98 thousand from 502.59. This could mean that fewer are actually purchasing cars but the auto industry is expecting higher demand.
The market is trending strong with good breadth, 88 percent of stocks are making new highs.
The outlook for the auto industry looks good. If ALSN releases better than expected , expect to see a move up.
The stock currently trades at 36.94, down 8% from its 52-week high. We saw a recent bounce off of the $36 support line. is in a range and the current move is supported by average .
I'm long in anticipation of a good release and a good Q4 period.