Monday, April 13, 2009

Weekly Stock Pick

Buy Sell Hold
This Weeks Big Financial Reports and Events

While my special trading software is scanning about 6,000 stocks on the New York and Nasdaq markets, I’m looking ahead at this week’s high priority economic reports coming out. Starting Tuesday is Advance USA Retail Sales, with USA Chairman Bernanke Speaking in Atlanta on Financial Crisis. Wednesday is the Consumer Price Index. Thursday is the Euro Zone Consumer Price Index report, and Friday is USA Chairman Bernanke Speaking at the Fed Conference in Washington. These are the biggie reports and events for the week. As always, stay tuned to these and other economic reports on short or long guidance in the markets.

Bear Market Rally Continuing or Back Down for More Correction Work?

The market has had a nice bull run lately. I’m still calling it a bear market rally now hitting major resistance. Now we watch for the corporate quarterly reports and see if current equity prices hold. I’m in the camp we have one more big selloff which then makes it the buying opportunity of our lifetimes. Long term investors, especially the big players as I see, are coming in now accumulating bit by bit, for when the market turns it could be a vicious reversal to the upside. Then we have to watch and see how the longer term plays out. Whether it’s a continued uptrend or the market goes into a trading range long term or simply fall apart again like it did last year.

My Weekly Stock Pick This Week Is A Big Company Getting Bailed Out

My stock pick this week comes from my technical scanning trading software. It popped up more short-sell potentials than long-positions this week. Not to say the market is heading now, just more clues to the investing trading puzzle. Long term, I think my stock pick will survive and grow again to be a major player in the automobile industry, but then again, it does have its share of problems still and lots of international competition. For the time being I’m putting a short-sell on this huge USA auto maker for a pullback before starting back on another very possible long-term uptrend. My analysis to sell it short is purely technical. Fundamentally they are slowly recovering, and have received Fed bailout money to keep them going. In the next two weeks or so when President Obama address’s the USA automotive industry issue, we might possibly have a clearer vision as to the future of this USA auto giant.

Sell-Short Ford Motor Company - Short to Intermediate Term / Ticker F

Sell Entry: 4.57 to 4.03

Stop-Loss: 4.88

Take Profit Areas: 3.65, 3.27, 2.89

Note: These lower take profit areas could be the place where we see great pricing for the long term. At thes very low prices, prices could rocket as they have on this recent rally.

Ford Company Profile

Ford Motor Company designs, develops, manufactures, and services cars and trucks worldwide. It operates in two sectors, Automotive and Financial Services. The Automotive sector sells vehicles under Ford, Mercury, Lincoln, and Volvo brand names. This sector markets cars, trucks, and parts through retail dealers in North America, and through distributors and dealers outside of North America. It also sells cars and trucks to dealers for sale to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments. In addition, this sector provides retail customers with a range of after-the-sale vehicle services and products in areas, such as maintenance and light repair, heavy repair, collision, vehicle accessories, and extended service warranty under brand names, including Genuine Ford, Lincoln-Mercury Parts and Service, Ford Custom Accessories, Ford Extended Service Plan, and Motorcraft. The Financial Services sector offers a various automotive financing products to and through automotive dealers. It offers retail financing, which includes purchasing retail installment sale contracts and retail lease contracts from dealers, and offering financing to commercial customers to purchase or lease vehicle fleets; wholesale financing that comprises making loans to dealers to finance the purchase of vehicle inventory; and other financing, which consists of making loans to dealers for working capital, improvements to dealership facilities, and to purchase or finance dealership real estate. This sector also services the finance receivables and leases that it originates and purchases, makes loans to its affiliates, purchases receivables, and provides insurance services related to its financing programs. The company has joint ventures with Mazda; Getrag Deutsche Venture GmbH and Co. KG; Neumayer Tekfor GmbH; Song Cong Diesel; and Lio Ho Group. Ford Motor Company was founded in 1903 and is based in Dearborn, Michigan.

Click here to review and Trial the Trading Software I used in determining my short position on Ford Motor Company. Enter I2S in the "coupon code" field to receive the 5% discount.

Click the Ford Motor Company Stock Chart for a larger view.

Ford Motor Company Stock Chart