Here's a Road to Fast Cars and Faster Profits

A muscle-stock in a strong sector. [Logo]( Here's a Road to Fast Cars and Faster Profits Dear Reader, Hi… Big Bill here. Thanks for joining me at "Micro-Cap Monday." Let's talk transportation… And then let's look at how to make money from it. Bill Spencer Editor-In-Chief True Market Insiders Imagine life in ancient Rome, and I bet you picture giant wooden galley ships and thundering "Ben-Hur" style chariots. If you envision the American Old West you probably see antique iron railroads and men everywhere on horseback. And if we imagine life in America between 1950 and 2023, and… Well, we don't have to imagine anything. Because we lived it. Transportation in the modern world means the almighty automobile. How much do Americans revere their autos? This much… And this much… And even this much. I got my drivers license in 1981, about a week after Ronald Reagan took office. My very first "ride" was a hand-me-down 1973 Pontiac Ventura. It sported bald tires, ran when it felt like it, and was the color of Pepto Bismol. None of that matters. What matters is she was the first. Which makes her the best. And that old Pontiac was just one of many, many millions of vehicles in what is still a giant, sprawling market. According to labor market researcher Zippia… - 36.2 million used light vehicles were sold in the United States in 2022. - As of 2020, 91.5% of households report having access to at least one vehicle. - There were 290.8 million registered vehicles in the United States in 2022. - There are approximately 1.446 billion vehicles registered in the world. - As a whole, Americans spend $698 billion annually on the combination of automobile loans and insurance. Right now, the Auto & Parts industry group is behaving like a "muscle sector," if there were such a thing. I mean - it's strong. For one thing, Auto & Parts ranks #2 out of the 45 sectors we monitor. Here's a view of the top of the Relative Strength Matrix, a tool that comes with Sector Prophets Pro, our sector research and data platform. The sector has been moving steadily up the relative strength rankings since May. It's outperforming the wider market, as you can see on this Sector Relative Strength chart. The chart is in a column of X's, highlighted in yellow. That tells us the sector is strong versus the market on a short-term relative basis. And that current column just got taller than the previous X-column. That tells us the sector is strong versus the market on a longer-term relative basis as well. When you post a sector this strong, it only remains to hunt for a strong stock that lives within it.     ACV Auctions Inc. (ACVA) is a small-cap company out of Buffalo, NY. Their business is simple, even romantic – they sell cars and trucks. More precisely, the company "operates a digital marketplace that connects buyers and sellers for the online auction of wholesale vehicles." ACV also provides information about the condition (and dollar worth) of used vehicles. According to the company, they are "on a mission to fundamentally change the wholesale automotive industry, by providing a level of trust and transparency that was once unimaginable." "We will continue to raise the bar every day by investing in our people and technology to help our customers succeed." ACV's management is doing a lot of things right. The company has beaten earnings estimates over four consecutive quarters. The number of funds accumulating positions in ACVA grew 21% in the past 12 months – from 251 to 304. When we look at the stock on our Portfolio Builder tool from Sector Prophets, we see it (and of course the sector) look strong across the board. The blue rectangle at the lower-right of the image above shows us three key things. One, that the sector is out performing the wider market (Sector RS is Strong)... Two, that the stock is outperforming its sector peers (Peer RS is Strong)... And finally, that the stock itself is outperforming the wider market (Market RS is Strong). Here's a one-year price chart for ACVA. The stock has pulled back a bit after making a new high of $18.68 on July 19. This, after gaining 187% since November 9. The stock trades in a steady, shallow staircase pattern where it forms a base (highlighted in blue, purple and yellow) then moves higher before resuming its consolidation. The green arrows show how, almost always, trading volume is higher on up days than on down days. The highlighted areas at the bottom, in the volume panel, clearly show how volume shrinks as the stock moves sideways and then spikes when the stock moves upward. The most recent bullish volume spikes are particularly noteworthy. Where is ACVA headed? This stock is clearly under accumulation. I think we could see a number of these stepwise moves in the coming weeks and months. ACVA currently trades near $16.50. If the stock continues its steady climb, look for short-term to intermediate-term moves to $21.50 (+30%)... $23 to $25 (+39% to +51.5%)... And eventually to $27.50 (+67%). Thanks for riding along today. Stay cool in the heat. Thank you for reading, and I'll see you next week.   [True Trader’s Sunday School #12 - Here’s Santa in July for You]( [On Fire But Going Higher]( [Here’s A Strategy That Beats Powerball](   Below is a sponsored ad from our friends at Palm Beach Group. Please note the results are from some of their best performing. Some opinions may differ from what you read in True Market Insiders. To opt out from receiving special offers [click here](. - Chris Rowe, Founder Digital Dollar Could Send These Three Stocks Booming A digital dollar (or CBDC) could soon replace the U.S. dollar. Most people could end up holding worthless dollars. But a few could get rich from this new shift. 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