Ford's Shift to Electric Vehicles Sparks Job Cuts in GermanyFord Motor Company (NYSE: NYSE:F ) has announced plans to streamline its operations, leaving a wake of job losses in its German plant. The decision, prompted by the company's strategic pivot towards electric vehicles, signals a seismic shift in the traditional automotive landscape.
Amidst burgeoning demand for electric vehicles, Ford ( NYSE:F ) has inked a deal with union representatives to slash approximately 2,700 jobs from its Saarlouis plant in Germany. This restructuring comes as Ford prepares to transition its electric vehicle production to Spain, leaving the Saarlouis facility grappling with an uncertain future.
The announcement, which follows Ford's earlier decision to assemble its next-generation electric vehicle in Valencia, underscores the profound challenges facing traditional automakers in adapting to the burgeoning electric vehicle market. With consumer preferences veering towards eco-friendly alternatives, automakers are compelled to realign their manufacturing strategies to remain competitive in an evolving industry landscape.
The ramifications of Ford's decision reverberate through the Saarlouis community, casting a shadow of uncertainty over the livelihoods of thousands of workers. The impending job cuts, slated to coincide with the cessation of Ford Focus production at the plant next year, signal a pivotal juncture for the region's industrial landscape.
Union officials, while acknowledging the inevitability of job reductions, have negotiated fiercely to mitigate the impact on workers. Under the agreement, around 1,000 jobs are slated for retention post-2025, with assurances against forced redundancies until 2032. This concerted effort aims to cushion the blow of the workforce transition and uphold the dignity of affected employees amidst the tumult of change.
Joerg Koehlinger, the district manager of IG Metall Mitte union, articulated the union's stance, stating, "After the best solution could not be realized, we opted for the second-best solution: to make job cuts as expensive as possible for Ford (NYSE: NYSE:F ). The result is impressive. Employees have the opportunity to leave the company through a very attractive program."
However, the fate of the negotiated agreement hangs in the balance as union members prepare to cast their votes in a pivotal referendum on February 22nd. Their decision will shape the trajectory of Ford's restructuring efforts and determine the contours of the social compact between management and labor.
In response to inquiries, a Ford spokesperson emphasized the company's commitment to navigating the restructuring process with sensitivity and transparency. "Subject to the formal steps for implementation, this marks an important milestone in the negotiations with the social partners on the social collective agreement, reconciliation of interests, and social plan that have been ongoing since last year," the spokesperson remarked. "A key component of these agreements is the planned gradual reduction of around 2,700 jobs through socially responsible, voluntary redundancy programs."
As Ford (NYSE: NYSE:F ) embarks on this transformative journey towards electrification, the repercussions of its decisions ripple far beyond the confines of corporate boardrooms, profoundly impacting communities, livelihoods, and the very fabric of industrial societies. The intersection of technological innovation and labor dynamics underscores the imperative for stakeholders to navigate this transition with empathy, foresight, and a steadfast commitment to safeguarding the welfare of workers amidst the winds of change.
FORD
Ford Motor (F, $11.72) (MACD) positive turned , January 31, 2024Ford Motor (F, $11.72) Moving Average Convergence Divergence (MACD) Histogram turned positive on January 31, 2024
This is a Bullish indicator signaling F's price could rise from here. Traders may explore going long the stock or buying call options. A.I. dvisor identified 44 similar cases where F's MACD histogram became positive, and 32 of them led to successful outcomes. Odds of Success: 73%.
F in upward trend: 10-day moving average moved above 50-day moving average on January 31, 2024
The 10-day moving average for F crossed bullishly above the 50-day moving average on January 31, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In 10 of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 77%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where F's RSI Indicator exited the oversold zone, 20 of 30 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 67%.
The Momentum Indicator moved above the 0 level on January 29, 2024. You may want to consider a long position or call options on F as a result. In 55 of 82 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 67%.
The Moving Average Convergence Divergence (MACD) for F just turned positive on January 31, 2024. Looking at past instances where F's MACD turned positive, the stock continued to rise in 31 of 44 cases over the following month. The odds of a continued upward trend are 70%.
F moved above its 50-day moving average on January 25, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a +3.42% 3-day Advance, the price is estimated to grow further. Considering data from situations where F advanced for three days, in 205 of 297 cases, the price rose further within the following month. The odds of a continued upward trend are 69%.
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where F declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 68%.
F broke above its upper Bollinger Band on February 01, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for F entered a downward trend on January 30, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Ford at a Crossroads: Assessing the Road Ahead for Investors
In the ever-evolving landscape of the automotive industry, Ford (NYSE: NYSE:F ) stands at a crossroads, grappling with challenges that have impacted its stock performance. While the last two months of 2023 brought about a commendable surge of over 20%, Ford's overall annual gain of 5% pales in comparison to the S&P 500's impressive 24% climb. Investors, however, remain cautiously optimistic, raising questions about the viability of Ford as a smart buy in the current market.
Challenges and Setbacks:
Ford's journey in 2023 was fraught with challenges, most notably a labor strike that temporarily led to the withdrawal of guidance. The estimated $1.7 billion earnings impact and an additional $8.8 billion in expenses over the life of a new contract have certainly raised eyebrows. The third-quarter results, missing Wall Street estimates, further underscored the difficulties faced by the automaker. Macro headwinds, such as higher interest rates, added to the complexity of an already tough environment for the industry.
EV Ambitions and Setbacks:
In the face of adversity, Ford pinned hopes on its electric vehicle (EV) ambitions, exemplified by the Model e. Despite a 26% revenue climb in the last quarter, weaker-than-anticipated demand prompted a delay in approximately $12 billion of EV-related investments. This strategic move, however, raises concerns about Ford potentially lagging behind competitors in the rapidly evolving EV market.
Evaluating the Bigger Picture:
Amidst these challenges, a critical analysis of Ford's long-term investment potential comes into focus. One prominent argument against including Ford in one's portfolio is the absence of an economic moat. Despite its household name status, Ford competes in a crowded market with numerous auto brands, limiting the influence of its brand name on financial performance.
The lack of scale advantages and consistently low operating margins present additional hurdles. Ford's mass-market approach, while ensuring widespread accessibility, requires continuous heavy capital investments in manufacturing capabilities, workforce maintenance, advertising, and research and development. Warren Buffett's disapproval of such capital-intensive requirements, especially in inflationary times, adds weight to concerns about Ford's investment appeal.
Shareholder Returns and Valuation:
Examining Ford's track record of shareholder returns over the past decade reveals a total return of 19%, inclusive of dividends. This figure, however, pales in comparison to the S&P 500 index, which would have more than tripled your investment with a 213% total return. While Ford's current price-to-earnings ratio of 7.6 might be alluring to some investors, skeptics argue that the cheap valuation alone is not reason enough to expect market-beating returns in the long term.
Conclusion:
Ford's journey in 2023 has been marked by both challenges and moments of optimism. As investors weigh the company's prospects, the absence of an economic moat, lack of scale advantages, and historical underperformance in shareholder returns raise valid concerns. While the stock's recent surge may inspire hope, the cautious investor may find themselves hesitating to embrace Ford as a compelling long-term investment in the dynamic landscape of the automotive industry. As the company navigates the road ahead, only time will reveal whether Ford can successfully address these challenges and emerge as a resilient player in the market.
Ford Motor's Resilience in 2023: Navigating Problems & Prospects
Ford Motor has emerged as a resilient force, reporting its best annual auto sales in the United States since 2020. The Detroit automaker's success in 2023 can be attributed to sustained demand for its crossover SUVs and pickup trucks, reflecting the prevailing trend of American consumers favoring larger vehicles for their safety and utility.
A Year of Triumph Despite Headwinds:
1. Robust Sales Performance:
Ford Motor's vehicle sales witnessed a notable uptick, rising by 7.1% to 1.99 million units in 2023. While this figure represents a slight dip from the 2 million units achieved in 2020, it signals a commendable rebound in the face of market challenges.
2. Consumer Shift to Larger Vehicles:
The American automotive landscape has seen a distinct shift towards larger vehicles, such as crossover SUVs and pickup trucks, at the expense of sedans and hatchbacks. Ford's strategic emphasis on these segments aligns seamlessly with consumer preferences, contributing to its robust sales performance.
3. Electrification Success:
Ford's foray into the electric vehicle (EV) market has proven successful, with sales of its EV models, including the F-150 Lightning pickup truck and Mustang Mach-E crossover, surging by nearly 18% to 72,608 units. The company's EV models now account for a noteworthy 3.6% of its total sales, showcasing a growing appetite for electrified options among consumers.
4. Hybrid Momentum:
In addition to its electric offerings, Ford's hybrid vehicle sales experienced a remarkable growth of more than 25%, reaching 133,743 units and constituting about 7% of its total sales. This signals an effective dual-strategy approach by the automaker, catering to both electric and hybrid preferences in the market.
Industry Dynamics and Challenges:
1. Market Trends:
The broader U.S. new vehicle sales market concluded the year at around 15.5 million units, with electrified vehicles, including hybrids, making up nearly 17%. This underscores the industry's gradual shift towards cleaner and more sustainable transportation options.
2. Consumer Caution Amidst Interest Rates:
Analysts have raised concerns about the potential impact of high-interest rates on consumer appetite for new vehicles in the future. Ford's ability to navigate this challenge will be critical, as economic factors continue to play a pivotal role in shaping the automotive landscape.
Ford's Market Position and Technical Analysis:
Market Standing:
Despite the challenges, Ford Motor solidified its position as the third-largest automaker by sales in the United States, trailing behind industry giants General Motors and Toyota. This underscores Ford's enduring presence and competitiveness in a dynamic market.
Technical Analysis
While the stock has faced challenges, breaking through support at $11.70, it is essential to note that Ford has broken the ceiling of the falling trend in the medium long term. This suggests a slower initial falling rate, and an established break predicts a further decline.
Conclusion:
In summary, Ford Motor's performance in 2023 showcases resilience, adaptability, and strategic foresight in navigating an ever-evolving automotive landscape. The success in the sales of larger vehicles, coupled with a strong showing in both electric and hybrid segments, positions Ford well for the future. However, the company must remain vigilant amidst economic uncertainties, particularly concerning interest rates, and continue to innovate to stay at the forefront of the rapidly changing automotive industry. As consumers increasingly embrace sustainable and technologically advanced options, Ford's commitment to electrification could be a key driver of its future success.
Ford Slides After New Profit Forecast, UAW Strike-Cost TallyFord pegged the cost of the six-week UAW strikes at $1.7 billion, more than rival GM's $1.1 billion estimate, while issuing an updated 2023 profit forecast.
Ford Motor (NYSE: F) - shares moved lower Thursday after the carmaker followed General Motors (GM) - Get Free Report in reinstating its full-year profit forecasts while noting it will lose around $1.7 billion from the United Auto Workers strike that ended late last month.
Ford said it sees adjusted full-year profit in the region of $10 billion to $10.5 billion, down from its July estimate of between $11 billion and $12 billion. Free cash flow should improve to between $5 billion and $5.5 billion.
The group reached a deal with the UAW on October 26 that will see members receive a 25% pay increase, including an initial boost of around 11% and a further 30% increase in cost-of-living adjustment payments. Ford said the contract would add $8.8 billion in costs over the 4 1/2-year contract.
GM said the six-week UAW strike would would clip around $1.1 billion from the group's bottom line. But as at Ford, GM said it would ultimately improve free cash flows thanks in part to strike-related shutdowns at various facilities around the country.
GM said it saw full-year adjusted profit in the region of $11.7 billion to $12.7 billion, down from its prior forecast of $12 billion to $14 billion. Diluted earnings, GM said, would likely come in between $7.20 and $7.70 a share, compared with its prior range of between $7.15 and $8.15 per share.
The carmaker also said it would boost its quarterly dividend by 33%, to 12 cents a share, starting in 2024 while immediately retiring $6.8 billion in GM stock through its new $10 billion buyback.
Ford - is the bottom in?Hello Friends 😁
The breakout of Ford NYSE:F from the triangle confirms for me that we are in a Wave E and thus in an A-B-C-D-E correction. Wave E has also completed Wave 2, and I expect that it marks the low of the correction for Ford.
I am very curious on how it develops 👀
Bye 🫡
FORD MOTOR CO (F) 1M NYSE:F FORD MOTOR CO (F) 1M
### Current Situation:
- **Stock Price:** $9.84
- **Moving Averages:** Below the 50-day, 100-day, and 200-day Moving Averages (MA)
- **Volume:** 508 million
- **Relative Strength Index (RSI):** Between 50.00 and 40.00
- **Moving Average Convergence Divergence (MACD):** Signals below the histogram
### Analysis:
1. **Price and Moving Averages:**
- The stock trading below the 50-day, 100-day, and 200-day MAs typically indicates a bearish trend.
- This positioning suggests a lack of upward momentum and possibly a bearish sentiment among investors.
- These MAs might act as resistance levels if the stock tries to move upwards.
2. **Volume:**
- A high trading volume of 508 million can indicate strong interest in the stock. However, the interpretation depends on the price movement context. High volume with a price decline can signal strong selling pressure.
3. **Relative Strength Index (RSI):**
- An RSI between 50 and 40 is often considered a neutral zone. However, trending towards 40 can indicate that the stock is approaching the oversold territory, which sometimes precedes a potential upward reversal.
- It's important to watch for whether the RSI crosses below 40, as it could reinforce the bearish trend.
4. **Moving Average Convergence Divergence (MACD):**
- MACD signals being below the histogram, especially if the MACD line is trending downwards, suggests bearish momentum.
- This might indicate that the downward trend is strong and could continue in the short term.
### Implications and Potential Strategies:
- **Short-Term Traders:**
- There might be opportunities for short-selling, given the bearish indicators.
- Watch for any bullish signals or a reversal pattern as an entry point for buy positions.
- **Long-Term Investors:**
- It's essential to consider fundamental factors alongside these technical indicators.
- If the fundamentals are strong, this bearish trend could present a buying opportunity. However, caution is advised until there are signs of trend reversal.
- **Risk Management:**
- Given the bearish indicators, risk management is crucial. Setting stop-loss orders can help mitigate potential losses.
### Conclusion:
The technical analysis suggests a bearish trend for Ford Motors stock in the short term, with several indicators pointing to downward momentum. It's crucial for investors to monitor upcoming price movements and news that might affect the stock. Also, integrating this technical analysis with a fundamental analysis of Ford Motors and the broader market conditions is essential for a well-rounded investment decision.
Remember, investing in the stock market involves risks, and this analysis does not constitute financial advice. It's always advisable to consult with a financial advisor before making investment decisions.
F Ford Motor Company Options Ahead of EarningsIf you haven`t bought F here:
or sold before the previous earnings:
Then analyzing the options chain and the chart patterns of F Ford Motor Company prior to the earnings report this week,
I would consider purchasing the 11.50usd strike price Puts with
an expiration date of 2023-10-27,
for a premium of approximately $0.31.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
Ford's (F) Q3 Earnings to Get a Boost From Blue and Pro SegmentsFord F is set to release its third-quarter 2023 results on Oct 26, after the closing bell. The focal point of the auto giant’s earnings release will be its global wholesale volumes from the Ford Blue and Ford Pro segments.
Q2 Highlights
Ford reported adjusted earnings of 72 cents per share for second-quarter 2023, which beat the Zacks Consensus Estimate of 51 cents and increased from 68 cents recorded in the year-ago quarter. Higher-than-expected automotive revenues resulted in the outperformance. The company’s consolidated second-quarter revenues came in at $44,954 million, rising 11.8% year over year.
In the second quarter, total wholesale volume in the Ford Blue and Ford Pro segments increased 7% year over year to 720,000 units and 8% year over year to 365,000, respectively. EBIT from Ford Blue and Pro units came in at $2,308 million and $2,391 million, respectively.
Ford reported adjusted free cash flow (FCF) of $2,919 million during the quarter. It had cash and cash equivalents of $26,406 million as of Jun 30, 2023. Long-term debt, excluding Ford Credit, totaled $19.17 billion at the end of the second quarter of 2023.
Factors at Play
While Ford Blue focuses on the firm’s legacy gas-powered business, Ford Pro deals with commercial vehicles and services. Expected higher year-over-year growth in global wholesale shipments and adjusted EBIT from these segments are likely to have positively impacted Ford’s upcoming results.
Our estimate for global wholesale shipments from Ford Blue and Ford Pro segments is pegged at 750,000 and 382,000 units, suggesting a year-over-year uptick of 1.2% and 19%, respectively. Our forecast for third-quarter Ford Blue and Ford Pro adjusted EBIT implies an uptick of 6.2% and a whopping 370.1% on a year-over-year basis.
The combination of Ford Pro's strong order books and the successful launch of the all-new Super Duty set the stage for promising results for the Ford Pro segment. In the quarter under discussion, Ford's commercial vans, led by the Transit van, continued to perform strongly. Transit van sales surged by 28.3%, with 34,006 vans sold, maintaining its position as America's top-selling commercial van. Ford E-Series vans also saw a 13.4% increase in the third quarter. Ford held the top spot in commercial sales, with a 40.5% market share, up 2.1% from the previous year. The Ford Pro segment is expected to have benefited from high demand for E-Transit vans. In the third quarter, the California Vanpool Authority (CalVans) announced the purchase of over 400 new Ford E-Transit vans through Model 1, a leading electric school bus distributor, expanding its fleet by 40% and reducing its fuel and CO2 emissions in California.
Ford Blue segment is set to reflect benefits from high ICE-powered vehicles, which rose 5.4% year over year to 444,681 units in the third quarter of 2023. Notably, the 2024 Ford Mustang debuted in August and for the third quarter, it recorded 9,844 sales, with the first full month of sales occurring in September. Notably, 67% of the Mustang's third-quarter sales, equating to 6,575 units, were realized in September.
Overall Earnings & Revenue Projections
Our proven model predicts an earnings beat for Ford as it has the right combination of a positive Earnings ESP and a favorable Zacks Rank. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The company has an Earnings ESP of +14.57% as the Most Accurate Estimate is pegged 6 cents higher than the Zacks Consensus Estimate. F currently carries a Zacks Rank #3 (Hold).
F (FORD) Wait For BuyAnalyzing Ford on the daily time frame, you can see that over the course of a month, Ford has fallen sharply after breaking out of the target completion corner pattern (price limited to $15). And its price return from the 11 range is not strong and you can see uncertain doji candles that there is a high probability that it will reach the 11 dollar range again. And since this range is a strong support zone, we could see a sharp bounce to the upside in the $11 range. In this pattern, double bottom are formed. And we chose the TARGET POINT based on this scenario. If it falls below $11, this scenario is violated !!.
Buying Ford at trend of higher lows.Ford - 30d expiry - We look to Buy at 11.71 (stop at 11.11)
Trend line support is located at 11.60.
Preferred trade is to buy on dips.
The sequence for trading is higher highs and lows.
11.58 has been pivotal.
We look for a temporary move lower.
In our opinion this stock is undervalued.
Our profit targets will be 13.21 and 13.61
Resistance: 12.35 / 12.91 / 13.20
Support: 12.16 / 11.90 / 11.58
Please be advised that the in formation presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Everest Fortune Group’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Everest Fortune Group
AXL: 3 Falling Peaks Aiming to Initiate A Type 2 Return to $1.00AXL, after giving us a decent type 1 reaction of the 0.886 PCZ, has now begun to slow down and has developed a 3 Falling Peaks pattern with a 4th lower peak for good measure, and it now looks to make a type 2 return to the HOP level, which would take it just below $1.00 if it plays out.
FORD Struggling on the 4hour MA200 but bullish nonetheless.Ford Motor / F hit the 4hour MA200 on Wednesday and got rejected, turning sideways.
As long as the 4hour MA50 holds, this is just the consolidation of the uptrend that started on August 25th.
There have been another 3 similar bullish waves in the past 12 months, all of which reached at least the middle of the 0.5 - 0.618 Fibonacci Zone.
Technically this is another such signal, so buy and target 13.70 (middle of the 0.5 - 0.618 Fibonacci).
Follow us, like the idea and leave a comment below!!
Ford is still within the rangeFord is still within the range
This chart shows the weekly candle chart of Ford Motor Company's stock from 2020 to present. The graph overlays the bottom to top golden section at the beginning of 2020. As shown in the figure, after peaking in early 2022, Ford Motor's company stock directly retreated to the 2.000 level above the bottom of the golden split in the figure, and began a one-year period of fluctuating consolidation of the market! At present, Ford Motor Company's stock is still within the range of volatility consolidation, and there is no sign of any strength to break through the existing range!
A brutal movement in the price action of FORD
During my thorough analysis of FORD's 4-hour price action, an intriguing revelation emerged: a hidden bullish divergence, a distinct pattern that warrants attention. This intriguing phenomenon is characterized by the following indicator values:
- A price of $11.29 accompanied by a Relative Strength Index (RSI) of 38.96.
- Another price point at $11.99 coupled with an RSI reading of 18.84.
The RSI was more oversold at 11.99 $ then it was at 11.29 $ indicating that this was an overall uptrend and we now that if something is oversold, it should continue up and there you have your confirmation for your uptrend continuation making this a good place to enter.
Also please note that I would usually use the RSI on a 1H time frame to find these divergences, but here we have been able to detect them on a higher time frame such as the 4H which means that this is a more higher and accurate signal compared to the other regular one which makes these a more confident trade!
FORD watching for a reversal from deep oversold LONGFORD on the one hour chart has been trending down with dynamic support from
anchored VWAP lines. However the zero lag MACD is showing some bullish divergence
with upgoing MACD and signal lines in parallel from a cross under the histogram
which converted red to green. There was an associated spike in volume in the range of 3x
the mean. The last earnings report only a few weeks back had a significant beat on the top line.
I will place FORD on my watch list for next week. I likely will take a long trade on
Mondday 8/14 with planned targets on the chart based on VWAP standard deviation line levels.
I am especially interested to see if FORD will go on a bull run and fill the volume void
from 14.25 to 15. If profits are taken off 40%, 40% ane 20% this trade could realize 20%
in profit.
Ford - A Cautious Post-ER Long ScalpFord is one of the richest charts among all of the U.S. equities to chew and savour for an analyst.
The reason is, its relevant price action to today spans some 22 years, and we can only see it on the monthly:
Notably, $26~ was a curious place for price action to stop and reject 18 months ago, leaving monthly hallmarks of potential targets
And looking at the weekly:
The rejection was so gappy, closed in ranges not seen on the monthly, but left open ranges not seen on the weekly.
And yet in 18 months, the flat bottom formed under $12 is no cause for bullish continuation. "Support" as retail traders are taught to believe in, is made to be broken.
Therefore, this chart would absolutely never be a long, in my opinion, except that price action you can only see on the daily has created a set of goalposts.
And those goalposts are at the $15.42 level, which formed a perfect double top composing the July high.
Before we begin, I want to warn you that trading the markets right now come with significant geopolitical risks surrounding China.
The International Rules Based Order is frequently going off about "de-risking" from China, but not "decoupling," and the meaning of this is pretty significant.
You should note that the propaganda machine is always targeting "China" but not "The Chinese Communist Party."
Don't you think it's strange that despite the CCP's 100 years of murdering significantly more of its own people than Hitler did in general that the global Party doesn't take advantage of the CCP's heinous human rights abuses and totalitarianism to take it down?
Instead, they're always going after China, its 5,000 year old culture, and its 1.4 billion pre-Wuhan Pneumonia population?
It's because the IRBO wants to take control of China as the CCP falls. They won't take control of it directly, because they're not Chinese, but will install a puppet from Taiwan.
And this is where "War With Taiwan" garrling comes from. It's not that Xi Jinping is going to invade Taiwan, but that the IRBO intends to take control of China with Taiwan as a proxy.
But Xi can always weaponize the 24 year persecution of Falun Gong, started by former Chairman Jiang Zemin on July 20, 1999, to protect himself and China, because Wall Street and the World Government have been extensively visiting Shanghai (Shanghai Gigafactory what?) to train Marxism.
And training Marxism in Shanghai means depositing collateral with the CCP.
Xi has never persecuted Falun Gong. Instead, Xi has even protected Falun Gong from the Jiangling thugs in Hong Kong, and that was the real purpose of the National Security Law and the installation of John Lee as Chief Executive.
Notable that Lee was banned from attending the San Francisco APEC conference in November by Joe Biden, in that light, wouldn't you say?
So, back to trading.
Generally, the market makers will not leave this kind of double top in play, because short sellers love to go bigly short under them because "it's strong resistance," before taking new lows.
It's noteworthy that Ford is only a ~$50 billion company. Compare that to Tesla and decide which company is over/undervalued.
And all of that is just theoretical, but when we combine it with the fact that Friday's earnings were actually pretty good, but Ford dumped, and back into the box that preceeded its breakout, making it a classic breakout-retrace long, we have a trade setup.
So here's the idea.
Unfortunately, I believe that there is extremely high probabilities that the indexes are topping to end July or to begin August, which I go over here:
# SPX - The Sound of a Shattering Iceberg
Ford would probably get drug down in a 200+ point SPX correction.
That means that while we have significant bullish upside targets, at the $18 and $22 levels, all of the long term price action considered, we probably have to raid the bottom under $10 before Ford can really and truly rally during an index recovery.
So what we have is a long from where we are on Friday, +/- $12.80, with a target of $16.
This is a pretty nice range to collect.
Rather than use a strict price based stop, what I would like to say is that if Ford does not trade up and away from this $13 level within the next two weeks, it would indicate that big money is up to something else, and a long trade is either not valid or too risky to bother with.
Conversely, if you're bold and brave, shorts/puts over $15.50 with a target under $10 before 2024 may equal an even better payout and risk reward setup.
This trade is something of a coinflip that I only have moderate confidence in. What I have confidence in is that the MMs will not leave $15.50 in tact before they really dump it.
I also don't believe they'll leave these perfect flat bottoms in tact before they pump it.
So, be careful, and good luck. Plays like this are a lot better than gambling on the latest dumpster fire coin (AMC, SPWR, lol) spread on Marxist messenger Reddit.
FORD fell after good earnings - now reverses LONGFORD on the 2H chart double topped in mid July and then descended as it had reached
the second deviation line above the mean anchored VWAP. It continued the fall had a bit
of pre-earnings run up and then paradoxically fell with very decent top and bottom line
earnings. If you know why please let me know. After earnings and the fall, FORD reached
the long-term mean VWAP and reversed as can be seen on lower time frames. I see this
as a VWAP bounce, the favorite place for institutional traders to make their trades. A volume
profile and its POC line find the highest trading volumes of the time interval. the MACD
and Price Momentum Oscillators are confirmatory with reversal signals. I will take a long
trade here. The stop loss will be 13 below VWAP. Targets are 14 (25%) 14.5 (50%) and 14.85
(25%). This is a simple trade with $0.25 risk which will be eliminated once price gets
to $13.5 making it risk and stress-free. I have an options trade in mind. Comment if
you want my specifics.