1) AZO is not that oversold. Relative Strength is better NOW than Aug 16th. MACD is low, but it certainly can go lower. 2) Why can't AZO go and challenge last year's low? 3) I would not be surprised that most of AZO's trading activity in the past year is hedge fund/quant driven. DE Shaw is rumored to have a proprietary trading strategy using AZO. Anyone notice that even gold miners were being whacked Aug 16? The gamblers had to liquidate everything to meet margin calls, regardless of how good the company may be. 4) Anyone ever think that high fuel is even more negative for AZO? If people drive less, they need AZO's products even less. Yes, they will keep their cars longer, but I think it is delusional to think the average Joe can handle much more than 1.1% of their car's maintenance. 5) With a short position of 3.6% according to Yahoo, I don't think that is so large given that this is not in everyone's portfolio. 6) Are AZOs peers doing that great? Are the manufactures rolling around in piles of money?
I certainly could be wrong, but I see AZO below 95 in October.