Stock to Sell #1 – Advance Auto Parts (AAP)
Advance Auto Parts (AAP) is a specialty retailer of aftermarket auto parts. The company reported Q2 earnings that beat estimates on Aug. 13, causing the stock to pop to $84.93. However, AAP settled into a downtrend shortly after.
It then continued lower, breaking its 200-day moving average and establishing a downtrend. The selling has been accompanied by heavy volume.
I recommend selling AAP based on its poor price action. Short-sale orders should be accompanied by a stop-loss order at $85.