Getting The Jump on Ford's 30% Rally In 10 Weeks
by Mike Paulenoff
August 14, 2022 • 12:27 PM EDT
On May 25, Mike Paulenoff alerted MPTrader members to a preliminary upside reversal signal in F (Ford). The stock at the time was trading at 12.40, up from its then multi-month corrective low at 12.07 established on May 20.
Mike instructed members that only a close below 11.00 would invalidate his preliminary bullish signal.
Then on June 10, with the major equity market indices in the grasp of a three-session plunge of 10% to 12% into what would become significant mid-June major corrective lows, Mike reiterated his bullish analysis about F, writing:
"F (Ford) remains on a Buy Signal generated by its price bottoming behavior since May 20th despite today's 3.9% drubbing in sympathy with the overall market. The 'bottoming behavior' will remain intact and viable unless and until F breaks to new corrective lows beneath 12.07 AND follows through below 11.00 (on a closing basis)."
During 8 of the 13 trading sessions between June 16 and July 6, F pressed to or marginally below 11.00 but never closed beneath Mike's close-only stop of 11.00, and by July 27 was trading at 13.15.
At that point, hours prior to Ford's earnings report, Mike posted another heads-up for MPTrader members, noting that the stock was "poised for upside continuation to challenge 14 -- the down-sloping 100 DMA."
As it turned out, investors and traders reacted positively to the earnings news, propelling F from its gap-up open on July 28 into last Friday's (August 12) high at 16.22, up a full 30% from Mike's initial alert.
F is an example of the risk management discipline Mike applies to the technical work that he communicates constantly to MPTrader members in every one of his intraday updates.
What's ahead for F as well as other auto names like GM and TSLA? Join Mike and MPTrader members for their intraday discussions and idea generation on individual names, ETFs, macro indices, commodities, and Bitcoin.
This past Monday, July 15, right after the opening bell, Mike Paulenoff cautioned our members about the technical setup in TSLA (Tesla), writing:"TSLA is in the grasp of a corrective period off of last Thurs (7/11) high at 271.00 that hit an initial low at 231.52 last Friday (7/12). The big rebound off of 231.52 to 262.72 during this AM's pre-market trading has the right look of an "intervening bounce" between two distinct corrective declines (the first being 271 to 231.52).
This week's selection for our Top Call -- VZ (Verizon Communications) -- is less a function of its recent success and more a reflection of Mike's technical setup work that projects gains in the days and weeks ahead. On June 17, one of our MPTrader members (FJB) alerted us to his fundamental work on VZ. After seeing his positive comments, Mike Paulenoff posted the following technical interpretation of the pattern setup:"... somewhere above 36.
On the morning of June 20, Mike Paulenoff posted a heads-up about AMD to MPTrader members, writing:"AMD has been upgraded this AM by Piper Sandler with a Target Price of 175. Piper reiterated its OverWeight rating and has made AMD its top big-cap pick for the remainder of 2024. Technically, AMD has its challenges and its work cut out for it to climb to Piper's 175 target. My attached 4-hour chart setup argues that for starters, AMD needs to climb above 158.
On the afternoon of May 7, 2024, ahead of earnings the next morning, this is what I discussed with MPTrader members about a forthcoming opportunistic technical set in UBER (Uber Technologies):UBER reports earnings tomorrow morning before the opening bell. My Big Picture setup suggests strongly that the bull phase that commenced in June 2022 at 19.90 still has unfinished business on the upside into the 90-100 target window.
This coming week is filled with consequential macro and micro "events," such as NVDA's 10 for 1 stock split, CPI, PPI, and TSLA's annual meeting, during which shareholders will vote to approve or reject Elon Musk's 2018, $56 billion pay package.Arguably, the most significant "event" for the technology sector, in particular, and for the major equity indices is Apple Inc.'s WWDC Conference, which begins tomorrow.