We are coming & here's why
3 indicators - volume, volume, & volume. Not going into obvious like, finally making an up move opposed to down so accustomed, covers, GM crossovers & fenced entries, Bull rally, DOW component?, Cramer, new lines, balance sheet, bailout, last man standing, etc.
Ford has been dragged & lumped for no good reason & has every ambition to rise as fast as it fell using change at its helm to further enhance abilities of resilience. Often an individual is condemned guilty within a community & must prove it's innocence. The results can be astounding as those quick to point a finger rationalize a hasty error of misjudgment.
Charts are not a factor as sentiment rules the market, but the media likes pulling them up. If one insists on technicals: Chart shows fear mid Sept $5.28 - early Nov $2.25 with 3 crests that supported the $5.28 & additional higher tops trying to ease fear to no avail as short sales stepped on it further, hence the volume frenzy with NUMEROUS 100M's. (Not just one or two, Many, Many incl 300M's in one session tossed into the mix) I definitely see fear that was taken advantage of. We had about 2 wks of support action at 3.27 hence the previous 'Here We Come'. Remember, we're only eyeballing 6 months of movement here. You want to go back a whole year, it really gets interesting, but for now the issue at hand has everything to do with about 6 months of history when the confusion initiated. We
should by all means have every reason to retest $5.24 - $5.30 where it all began & justifiably. I believe our next stepping stone is $3.51 & should it hold with ease, $3.99 is the 200ma & the 1st S/T target.
The most significant Institutional Share Addition last Friday (4/3/09) was Royal London Asset Management Ltd 83,445 & Fidelity Advisor Consumer Discretionary Fund taking a new position with 71,384 shares. Many new holding position were taken prior to Friday recently, helping the altitude F gained as it advanced to $2.95. The most significant being Mainstay S&P 500 Index Fund, Nationwide Bond Fund, Maxim Series Fund Inc & HBK Investments, while others such as JP Morgan Chase thought it best to sell SOME back on 3/18 when F consolidated at 2 bucks. (Might be some unhappy investors with those fund managers eh?) 1/3 of their holding. Maybe they will see their error & buy back?
Flipping/Swinging/Scalping a falling knife made sense going downhill, but uphill is a whole different story. It made sense on a declining PPS fear driven in mass. Back then it was even harder. We were catching falling knives to begin with. Today, we have a completely different animal. It's called a bull. That tact might take you out of the game completely should you attempt it now. I've been suggesting BUY/HOLD/ACCUMULATE for a reason. Some of you are feeling the effects of it for ignoring. It's never too late to enter your new bottom, others call a high. For that reason, those calling it their high today will most likely be countered by others calling it their low. I cannot stress this enough. Indeed one guys sell is another man's entry. There is always an entry & it's just as safe as the last. If you think you missed the 'bottom' & you're waiting for everyone to sell so you can get back in, from experience I can tell you, we aren't coming back for you. At some point you have to just bite the bullet & get in for cryin' out loud. Seems the recent turn of events agrees & this is only the beginning. Personally, I recently bought a high, & I'm holding a profit. There will be many other instances of this.
Ford has fallen from $9 over the course of a year. Was it justified or lumped? Should Ford rebound, as is slated, $9 will be a good entry too.
Just my brief opinion.