Ford announced a $1Billion 3rd-quarter profit this year, and the shares are going to pop from $7 up to $10 in trading on November 2. That’s the prediction after reading the headlines before trading begins on the stock market floor and a really good example of how you can use headlines to plan your swing trade. This Ford Fever will let you set up a trade that lasts from Monday through Tuesday, with a price correction on Wednesday (or even Tuesday afternoon.)
The automotive company is a classic example of how most businesses didn’t need the government bailout money and that President Obama and Congress were very short-sighted in offering that solution. Ford did what any American worker would do in the case where there was "too much month at the end of the paycheck". The company reined-in spending, and controlled marketing with a promotion, the Cash For Clunkers program. Wait, wasn’t that a government program? So is Ford not really telling the truth when they claim they didn’t take Government bailout money? The truth is a little more muddled than that. Yes, Ford took government money, but technically, it wasn’t the bailout offered to every other Wall Street giant to reward them for ruining the economy.
But is the Economy ruined? Not according to $1 Billion dollars in profit reported by Ford. This means more fuel efficient cars on the road (though Ford is doing themselves, our country and our economy a disservice by not voluntarily making their automobiles the standard by which all others measure themselves.) New cars on the road using less gas means more disposable income to spend on other products. New rounds of spending based on lenders making car loans. More work for the repo men when people can’t make the payments on their new cars because the economy is rebounding too slow, and those same people buying new Fords could have invested in a few swing trades and paid cash for their car.
But let’s talk about you and your investment strategy with Ford. Buy it today. Ride the stock up through tomorrow. Plan your exit strategy accordingly, with an alert set for the $9.75 mark. Get out and if the stock looks like it’s going to keep going up, buy another round and ride it out. The key to your success with this trade is, you’ve read the headline this morning, business channels will be talking about it all day, and investors will run up the stock price based on this excitement. Grab your piece of the pie from this stock and plan to get out with profits in the next 24 to 48 hours. This is how you use headlines to plan your swing trade.
NOTE: The foregoing represents one analyst’s advice for your consideration. Factoidz as an entity does not offer specific investment advice, and will not be liable for any financial loss related to the use of this information. Factoidz recommends that you consult your investment professional to decide what is the best investment strategy for your particular goals and circumstances.
