Ford Motor Company (NYSE:F)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.