Wednesday, May 5, 2010

Ford (F) "Double Top" Indeed

If you are newer to technical analysis and want to know what a double top looks like, look below. Of course you never know until after the fact but if you spot it early and have the gumption you can make some nice bucks off these formations, which are bearish. On April 29th I wrote [Apr 29: Looks Like a Potential "Double Top" in Ford] The chart looked like this:

Today? Double top.... indeed.

Of course with almost every stock moving in concert with the greater market nowadays (I have called this student body trading) knowing which way the market is going to move in now 90% of the battle (in the old days it was maybe 60% of the battle). So how much is Ford specific and how much is baby with the bathwater trading, who knows.

On the positive side, it was identified in theory with Ford. On the negative, no monetary gain was made.

As an aside, outside of the overall index charts, I am seeing a lot of stocks finally beginning to break down similar to Ford. Hence anyone with discipline will be taking stop losses on these type of positions as they break support, rather than attempting to catch falling knives.

No position

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