Solely 10% (or about 50) of the S & P 500’s holdings superior on Tuesday’s market-wide sell-off, which is a particularly low quantity. Two of those had been Autozone (AZO) and O’Reilly Automotive (ORLY) . Being up on a really massive down session is not the one factor that the shares have in widespread. They each are automotive corporations, and each are priced over $1,000 share. The truth is, they’re two of simply 10 S & P 500 holdings at the moment buying and selling over the $1L mark. The explanation we’re writing about them is that they’re in distinct uptrends throughout varied time frames. Nonetheless, since they aren’t Magazine 7-related and are not in an trade sometimes regarded as high-tech, they do not get a number of consideration. We’re giving them some consideration at present. Do not be scared by excessive inventory costs Earlier than we get into the charts, we first should come to grips with their sky-high costs. AZO is buying and selling round 2,730 vs. 1,050 for ORLY. AZO has had two inventory splits in its historical past vs. three for ORLY. AZO’s final break up was in 1994… 30 years in the past. ORLY’s final break up was in 2005… nearly 20 years in the past. Here is why we like AZO and ORLY: 1. Each shares routinely have traded above their respective upward sloping transferring averages. There have been events once they have undercut the road over the previous few years, however apart from throughout COVID, the time spent below the long-term common has been minimal. This exhibits underlying demand even after selloffs, which is how uptrends persist. 2. Constantly robust weekly momentum That is evident on the weekly charts, too. Discover how the 14-week RSI (a measure of momentum) has oscillated between the overbought threshold and the mid-point since 2018 for each. Not many shares have been this constant over this timeframe. 3. Multi-decade uptrends Listed here are 25-year charts of each shares. Whereas there have been intervals once they’ve struggled for a number of months (most lately in 2017), the very long-term traits haven’t been violated. 4. Primed to outperform the market once more All that mentioned, AZO and ORLY haven’t outperformed the S & P 500 during the last two years. However their current relative traces vs. the SPX now resemble the patterns from 2019-21, proper earlier than robust relative strikes commenced. Whereas previous efficiency would not assure something for the longer term, understanding AZO and ORLY’s historical past, they might be able to breakout on a relative foundation once more quickly. -Frank Cappelleri Founder: https://cappthesis.com DISCLOSURES: (None) THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click on right here for the complete disclaimer.