By: Scott Redler
It’s hard to have confidence in this president–the Big Government system–and this economy right now! We can only have confidence in our ability to control our actions, spend time with our family, and live life with the proper mantra. Let’s hope that this real grass roots movement continues to bridge the gap between the public and private sector.
Anyway!
The market was clearly overbought as the last squeeze through 1,104 on the S&P stopped out the remaining shorts on Friday and then cleared way for this down move. I hope you were all prepared. There were lots of great shorts yesterday (like that CREE I highlighted). Now is the time to see where we can hold.
I would like to see this market enter the 1,080-1,090 area. This is where we MUST hold in order to maintain the underlying technical strength.
One stock I would like to highlight from the Morning Gameplan today is Ford Motors (F). It has nearly doubled in price since November and now looks ready to breakout from a triangle pattern on the daily. I am especially fond of strong charts that are paired with a fundamental catalyst. In this case, that catalyst is undoing of Toyota’s (TM) image is one of the world’s safest, most reliable car-makers. I will be looking for support in the $11.50 area and resistance around yesterday’s high of $11.63.
