The SmarTrend Trading Community

Q: Dear Mr. Brian,

Do you like the LEAPS on Ford ?
Jan 2010 $20.00 Calls ?
Jan 2011 $2.50   Calls ?
Thank you for great information.

A: We do not look that far out as SmarTrend is designed to detect short term trends.  Longer term trends are comprised of many smaller short term trends and that is what we predict.  We issued an Uptrend on 3/18/09 @ $2.46 which is still valid at this time.  Given that the length of trend is approaching extremes, we would be cautious near term as the probability of a correction increased.  It looks as though F will trade in a range between 5.20 and 6.20 as it has since mid- April.  Just keep an eye out for any breakouts of that range in one direction or the other as that will likely determine the direction of the next set of mini-trends.  As is often the case, the longer a stock trades in a tight range, the larger the breakout.

Q: Please help me with Ford.
his stock is a real head-scratcher for me. I bought it at $6.02.
-Thank you very much.

A: As for Ford, a subscriber also asked me about that today.  What I told him was that we uptrended it on 3/18 right after it crossed above the 50-day moving average.  It has since moved much higher and is also consolidating in the $5-6 range.  The $5 level was important support/resistance back in July-October 2008 so keep an eye on that level.   As a stock gets too far above the 200-day average there is always some risk for correction. It broke support at the 50-day (5.73) and made a lower high on 7/1 so I am watching for a potential little head & shoulders which may push it slight lower.  Simply put, I like it better at $5 than I do at $5.70 from a risk/reward scenario since it was able to bounce off of $5 back on 5/13.