F, Ford.

F aug 8 2011

Our ideal target for Ford was in the high $7, $7.84 being a Fibo 62% down. The stock may well be a buy at these levels despite being about $2 short of that low. The reasons are;

1. The stock dropped 50%

2. It dropped to the 4th wave of previous degree.

3 The drop is a crystal clear a-b-c, 5-3-5 structure, complete even of it could become more complex yet.

4. The RSI and MACD is at lows not previously seen over this period.

5. Fundamentally they are doing relatively well.

Recognizing that the correction could become more complex, for instance by moving back up to say $16, and then going south again towards $8 (shown in black). Even in those circumstances this is a buy for a very reasonable trade , up $5 or so is, after all 50%. Just use a stop, mental or real at $10.