Ford stock diving faster toward key support level into option expiration
Ford Motor company (NYSE: F) stock closed Tuesday at $10.14 still above but diving fast toward that key support level of 9.75, where buyers overcame sellers in the past.
Perhaps it’s not Ford’s fault anymore than it is GM’s fault that its stock has been tanking along with the rest of the market. After all, this is May, the anniversary month of the great flash crash; and people are skittish. However, anytime Ford stock tests the $10 mark, one has to wonder if this is a gift that will pay off for investors who believe in the fundamental outlook of the Blue Oval.
Perhaps it’s all a matter of perspective even more so this time; often is with market entities. After all, May is also the month when the adage, ‘Sell in May and go away’ is invoked by many talking heads on CNBC. After the sell-off these past two weeks, though, it is hard to dismiss.
Main question is, how long shall we stay away? And should we stay away from everything that is an equity? Is Ford an exception considering its product lineup and EcoBoost™ line of engines, not to mention its new hybrids followed by that new Ford Focus EV?
Ford Stock Chart
Not too much has changed for Ford stock since I reported last, except the trend bias towards the downside has indeed gotten worse. Sure, this Friday is option expiration, when volatility fills the air for all stocks. Then again, the JP Morgan (NYSE: JPM) bank trade bumble of $2 billion, along with Greece who still cannot decide on how austere it needs to be, are taking its toll on trading mindsets these days; albeit JPM had a decent day today rebounding.