Judging from my email this morning, a many of you are interested on my opinions on various stocks. As I said in my last post, anything written here is for discussion purposes only and you should discuss your trading with the appropriate professionals before entering any positions. Okay, disclaimer done.
I base my trading on finding fundamentally good stocks and waiting for the best near-term buying opportunity given my desired holding period. I look at daily and weekly data, calculate underlying trends and cycles, projecting my calculations into the future to locate the best potential entry timing. I update the analysis day by day until I buy the stock or decide to eliminate it from consideration.
So what about Ford.
Ford has been on a solid upswing since 12/19/2011 when it closed at $10.02. Price action over the last few days provides evidence that the uptrend is losing steam. I believe Ford has reached a cyclical top at roughly $12.00 and from Friday will move down into a trough about 1/23/2012. Look for support around $11.00 and if the decline is steeper at $10.30.
So let’s watch together and see what happens.