Well, the 'adults' are back in the markets, as CNBC put it yesterday. And trading is supposedly back to serious trading, as everything closed way up on Monday.
It's good to see an up-day, but I feel that the recent end-of-summer rally is a bit overbought. In particular, I noticed Ford's chart was showing a weeker slope with possible signs of a turnaround. I shorted yesterday, right before Bill's announcement of his new CEO. The stock is up on the overnight news, but I'm not ready to give up yet. The stop is set, and I expect the price to recover down to the low of a channel, maybe to 7.80, before recovery.
Basically, the good news had already been 'baked in' to Ford's stock. I wanted to go long when I first heard Ford had hired a well-known turnaround manager, but the stock had already rallied. But I watched it rise another 2 bucks while waiting for the rocket fuel to burn out. I don't expect to be short more than a week, as I have good faith in the new CEO. However, it will be a long and slow recovery.
Here's a random question:
Why is it that the really cool/funny commercials these days are by the credit card companies? Namely, the Capital One commercials, and the Citi Identity Theft victims are my favorites today. Until about 5 years ago, the beer commercials were the best. What happened? Did those talented marketers move to companies that serve the credit card companies? Or is this a sign of the times, that money is no longer in beer, but in the financial industry?