Ford comes in, DDD gets hit, and Hain needs to hang on!

Ford announced Q4 earnings this morning, showing strong Sales and Earnings Per Share (EPS), but provided  caution on their European markets. it is now at our $13 level and I think its a decent stock here above 13.00. As long as its above 13.00 I think its a good buy.

DDD's hot streak came to an end yesterday selling off more than 11% on the day. Today shares initially showed more weakness only to rally hard into the close and managed to retake the 20 day moving average. The past two days have shown some violence (lots of price volatility)  in their trading action. We should let this one cool off a bit before we want to get involved. There is a saying that stocks form their tops in violence  and bottoms in silence.

This is not the kind of pullback we typically like to see. Usually what we like to see is a low volume, slight decline. A huge move on massive volume, followed by another surge in the opposite direction on similar volume, says that there is a large range of prices that buys and sellers are disagreeing on. I would rather not pick a side here, but rather join the side that comes out with control when the waters calm.


HAIN made a strong move last Friday breaking above key resistance and both the 50 and 200 day moving averages. Yesterday however reversed that move right away bringing us back under the resistance level. Today saw some early selling get bought and managed to hold above the 20 day average.

This reversal has the look of a bull trap. Having price break through resistance and the key moving averages only to reverse substantially, trapping all the buyers who bought on the breakout. If the support under the prior low fails ($54.20), there will be no trade here for now.