Dear Traders,
I'm not expert in Wyckoff methodology, for which i need a second confirmation on my findings.
For a while i was watching Auto retails parts and repair, the financials are looking very bad, more specifically with current liabilities, raising interest rates and declining demand for new cars.
every analyst i watched in the last two months, are pushing AZO, ORLY, AAP ... to new highs as with higher interest rates, less new car sales, people will buy used cars, and they will need more parts and repairs. looks raisonable. what is not raisonable is that all these companies financials should go bankrupt with higher interest rates as loans are getting expensive for them, they do not have enough cash to cover quarterly expenses and issues with raising wages ...
the below attached screenshots are showing a decline in Institutional ownership for the last 6 months, in the last 3 months, $1.44 billion of shares was sold by institutions, still they own 96% of he whole float (Graph from Finviz)
the second graph showing stady decline for the last 7 months (graph from fintel.io)
then we have the above may be distribution or re-accumulation (if re-accumulation, do institutions wants more then 96% of all shares ??? ).
Let me know what you think about it, i'm considering 60 days puts on it, still not sure where to open my short position.
Thanks,
Sam
I'm not expert in Wyckoff methodology, for which i need a second confirmation on my findings.
For a while i was watching Auto retails parts and repair, the financials are looking very bad, more specifically with current liabilities, raising interest rates and declining demand for new cars.
every analyst i watched in the last two months, are pushing AZO, ORLY, AAP ... to new highs as with higher interest rates, less new car sales, people will buy used cars, and they will need more parts and repairs. looks raisonable. what is not raisonable is that all these companies financials should go bankrupt with higher interest rates as loans are getting expensive for them, they do not have enough cash to cover quarterly expenses and issues with raising wages ...
the below attached screenshots are showing a decline in Institutional ownership for the last 6 months, in the last 3 months, $1.44 billion of shares was sold by institutions, still they own 96% of he whole float (Graph from Finviz)
the second graph showing stady decline for the last 7 months (graph from fintel.io)
then we have the above may be distribution or re-accumulation (if re-accumulation, do institutions wants more then 96% of all shares ??? ).
Let me know what you think about it, i'm considering 60 days puts on it, still not sure where to open my short position.
Thanks,
Sam