Lightning McQueen Gets All the Attention
“Cars” was a 2006 Pixar / Disney movie that had a red race car with the name of Lightning McQueen as the main character. Other car characters in the movie included Doc Hudson, Sally Carrera, Mater, Luigi, Ramone (a 1959 Chevy Impala – ask us why we’re partial to this one), and more. We got to thinking about the movie as we reviewed the global auto sector and it was reinforced that Lightning McQueen…er, Tesla (TSLA) is not the only car on the track.
There’s no doubt Tesla has been the Lightning McQueen of the sector as it gained 54% from Oct 1, 2001 – Nov 1, 2001, was up nearly 70% year-to-date through Nov 1, was up 740% in 2020 (that is not a typo), and including 2021 has been up in 10 of the 11 years that it’s been public. 2020 was truly turbo-charged.
Our chart below shows the Bloomberg Global Autos Index which includes TSLA (it carries a near 50% market cap weighting in the index) in blue and the same index ex TSLA in black. This chart is not intended to say that the blue line is a sale and the black line is a buy, but it is intended to say that that there are a bunch of otherwise strong and buyable stocks within our adjusted Global Autos Index.
For example, our Technical Scoring System shows 74% of the 23 components with strong Scores and only 4% have weak Scores.
While there are lot of strong stocks in the list above we’re concentrating on six as they’re either BASING or not extended: Toyota (7203 JP), Ford (F), General Motors (GM), Maruti Suzuki (MSIL IN), Ferrari (RACE), and Stellantis (STLA). Please check the charts below.
Toyota w/ 40-Wk Mov Avg and Weekly MACD – We really like the BASE on a BASE set up here. The ADR (TM) is also in a good spot to buy.
Ford w/ 12-Month Mov Avg and Monthly MACD – We’ve highlighted this in our last two 22V Weekly Webinars because the Brobdingnagian BASE is intoxicating.
General Motors w/ 40-Wk Mov Avg and Weekly MACD – We really like the BASE on a BASE set up here, too. It’s a distinct plus that the momentum excesses were corrected while the stock essentially has been sideways for 9-months.
Maruti Suzuki w/ 40-Wk Mov Avg and Weekly MACD – Preparing to breakout from a 3-year BIG BASE.
Ferrari w/ 40-Wk Mov Avg and Weekly MACD – Breaking out and accelerating.
Stellantis w/ 40-Wk Mov Avg and Weekly MACD – Potential BIG BASE
