A Short Idea For You - AZO

I really like this one because it's still in an excellent spot, there's a decent chance it will give a little better entry with less risk and it has a lot of potential downside. I do think I'll be looking at adding AZO as a core short position and watching for the opportunity starting next week.

 Take a look at the price/volume trend and percentage gains, in healthy areas AZO did pretty well, the 2002-2007 bull market wasn't great for a car parts seller as most were buying new cars off their HELOC. The 2009-present move o no volume is a sugar rush move fueled by Central Bank liquidity, it's a bit too parabolic and I don't think that ends well.

 Here the 14 day ATR is rising, partly as a function of price, but more so as a function of volatility associated with tops.

 Here are a few Channel Busters, note how they move from one extreme to the other, I think we are currently in the end game for AZO, they're setting up the exit.

 Money Stream is in one of the largest negative divergences for the stock, although we've seen worse, my guess is the near 16 P/E will see 10 and maybe overshot a little on the downside on the way there.

 The 60 min 3C chart shows this last run to be a distribution run.

 The 30 min chart confirms it.

Traders are optimistic so I'm guessing with the big green volume they think that's smart money buying and that allows them an excuse to fudge the trend lines a little to create a large continuation triangle, but triangles this large (which it is not), are tops or bottoms depending on the preceding trend. The yellow area is our target area, but I have a feeling we are very close to that target area. We'll look closer next week for the tactical entry now that we have the strategic picture.