There are several criteria that O'Neil looks at before considering a buy: technically you want a sound base, and fundamentally you want growing earnings. You also want to be ina strong industry, and
CPRT is in auto dealerships, which has been fairly strong lately. Most importantly, you want a stock with high relative strength. The trouble is, after a strong market rally that has gone on for months , any stock forming a base at this point is going to have low relative strength. Everything about this chart looks ok except for the horribly weak price relative line, and that may be telling us that the market rally is getting old.
