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No. of Recommendations: 0
Sharpvt,

You are right. The home building industry has been red hot, and the charts are magnificent. It just seems like that momentum can't continue much longer. And to me homebuilding seems more dependent upon consumers' discretionary spending than does the auto and truck repair industry. I'm not arguing AGAINST homebuilding stocks mind you. (I had my eye on Toll Brothers (TOL) for a while and am now wishing I had snapped up some of it, especially since late November.) I'm just giving you my opinion on why ATAC looks good to me.

I like to find the traditional cup-with-handle chart formation where the volume in the handle dries up to nearly nothing. This is one of the bullish signs O'Neil identifies. And in looking through NASDAQ stocks in the news in IBD last week, I noticed ATAC's chart looking really good.

Today's IBD ratings are: EPS 83; RS 98; Grp RS B; SMR A; Acc/Dis B. It is rated best in group in each of the four categories: Overall, Technical, Fundamental, and Attractiveness.

For these reasons, in addition to those I already mentioned, I think ATAC has a realtively good potential for a strong move to the upside in the short term. Maybe it will be outpaced by some of the home builders you mentioned, but I think there's less chance of it falling significantly. As always, I could be wrong. That's what keeps life interesting.

—Rob
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