Buy Ford NOW!
This morning I decided to use Barchart to see how well Ford (F) was doing. To my surprise I noticed it was down but starting to turn upward. As the market and the economy recovers this is your best bet on an America auto maker. I know we like to think of Ford as an American automaker, but make no mistake about it is a world wide automaker with over 45% of its operations in foreign markets
Ford didn't need the bailout funds but is still a risky venture. Troubles in Japan's auto industry has left the door open and Ford has the new cars to fill that void. A new partnership with Sollers, the Russian auto maker will give Ford access to one of the fastest growing auto markets in Europe.
Barchart technical factors
1 - Barchart is a price momentum website and its indicators can signal a turning point
2 - 64% Barchart technical sell signal but sell signals are weakening
3 - Trend Spotter sell signal -- The signal is weakening rapidly
4 - Below its 20, 50 and 100 day moving averages but the price has been in an upward trend since June 20
5 - 11 down days and 10.66% off its one month high
6 - Relative Strength Index is 41.66 but getting stronger
7 - Traded around 13.33 which is below its 50 day moving average of 14.45
Summary: US investors are very high on Ford (F) for what they might consider a vote for American pride. I think investors could make 15% with a 5% +/- range on an annual basis over the next 5 years. I like the stock but all the variables make this a pick only for speculative investors. Risk adverse investors should look elsewhere.
Jim Van Meerten is a Marketocracy Master