Ford Motor Co. - F - close: 14.66 change: -0.14

Stop Loss: 15.15
Target(s): 13.25
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
The situation is not looking good for Ford. The stock spent nearly three weeks trying to hold support near $15.00 and the combined might of its 50-dma and 200-dma. That support broke down yesterday. There wasn't much of a bounce attempt today. I would be tempted to launch bearish positions now. However, the $14.50 level has been significant support in the past. Thus I am suggesting a trigger to open bearish positions at $14.40. If triggered at $14.40 we'll aim for a drop to $13.25. Do not be surprised if Ford produces a short-term bounce near its March lows near $13.75. I would keep our position size small to limit our risk.

Small Positions! Trigger @ $14.40

Suggested Position: Short F stock @ $14.40

- or -

buy the July $15 PUT (F1116S15) current ask $0.78

Annotated chart:

Entry on May xx at $xx.xx
Earnings Date 07/21/11 (unconfirmed)
Average Daily Volume: 57 million
Listed on May 24th, 2011