Petra Hess of PetraPicks.com says in the Raging Bull podcast that CarMax (KMX) has regrouped from its recent decline of more than 10 percent, and now is ready to move above its 20-day moving average, a path to re-capture double-digits back to recent highs. Hess noted that she likes the auto-parts sector and the looks of several other players — AutoZone (AZO), O’Reilly Automotive (ORLY), SORL Auto Parts (SORL) and Advance Auto Parts (AAP) — but noted that most of those stocks need a step back before being ready to buy, while CarMax has already come down.
Hess is not yet in CarMax — though she alerted her members to watch the trade last week, she was away and did not act on it — but said she is looking to buy if CMX crosses above $70.88, noting that she would not chase it above $71.20. Her stop-loss on the trade would be below Monday’s candle, or $69.02; her target is the previous high right around $77 — about a 10 percent gain — which she thinks could happen in five to 10 trading days.
Petra Hess runs PetraPicks.com and is a technical swing trader and long-term investor in domestic and Canadian stocks and ETFs. At the time this interview was taped on Dec. 4, she had no shares, options or open orders in KMX, though she was watching the stock as described here. She also did not own shares in AZO, ORLY or SORL, and she had a small long-term position in AAP; she had no options or open orders on any of those stocks. The Raging Bull podcast features experts from the site talking with financial journalist Chuck Jaffe on his show, “Money Life with Chuck Jaffe.” You can learn more about Chuck’s daily hour of market and personal-finance chat at MoneyLifeShow.com; you can subscribe to the Raging Bull podcast via iTunes and other podcast providers.