F, update

f aug 3 2013

In our last blog on Ford , in Oct. of 2012, we recommended F as a buy at about $7.80 (see previous blog).  We missed the boat by a fraction and now we are changing our count. Instead of being in wave 3 up we suspect the stock is still correcting the move up from below $1 to $19. The initial wave down to $8.70 or $8.56 would be wave a. The rise back up , where we are now, would be wave b. Wave could start any moment and could reach that $7.80 level or even lower this time around. Sell now and see if it breaks down as it should. The RSI and MACD are supporting this outlook.  Given this structure so far, a flat 3-3-5 would make the most sense which argues that the was at $8.70, not $8.56. For the moment, who cares?