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Random Thoughts: Stocks Rocket on the ECB... But Will It Last?


The path we take trumps the destination we arrive at.


Ford? Tough!

There's a little bit of Peter Lynch in all of us; when we use, like, and enjoy a particular product, we intuitively believe in the brand, which, in a perfect world, makes us wanna own the stock. That dynamic arrived last week as I was behind the wheel of my new ride. I haven't owned a car in over a decade (living in NYC) and it was (cough) suggested to me that I get something practical.

I have an American flag in my front yard and it didn't feel quite right having a foreign car parked in my driveway. I swallowed hard and leased what I perceived to be a Mommy Wagon: The Ford Flex. Lemme tell you this - it is not a Mommy Wagon; I am very impressed with this car. As a matter of fact, I barely get to drive it anymore as my Jamie adopted it as her own (happy wife, happy life!).

The renaissance of American car manufacturers is in full swing; given today's "here, me, now" socionomic mindset, folks are hunkering down to take care of their own. When GM was toe-tagged in 2008, I took a long hard look at buying some Ford (F) and putting it away for a rainy day (the stock was changing hands for a buck and change). I didn't pull the trigger, but that was then and this is now.

Sure enough, when I pulled up the chart, I saw a (bearish) head & shoulders pattern. Ironically, doing the math, this chart, through a pure technical lens, works back to $1. (The "head" ($19) minus the shoulder ($10) equals $9; when subtracted from the right shoulder ($10), you arrive at $1.)

Obviously, I don't think that Ford trades back to a buck anytime soon but it was enough to quell my desire to get involved in the stock under $10. See the chart below, and remember that technical analysis is but one of our four primary metrics.

Click to enlarge
Position in QQQ.
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