It appears that a pull back may be in the making after yesterdays sharp decline in the markets, and I couldn’t be happier.

I’ve kept my powder dry so far, and am looking for another good trade. Ford is back down to $3.50 per share this morning after topping out above $4 last week. I still look to pick some up around $3 but will continue to monitor the trend.

General F, Ford, Investing

So I missed my opportunity to buy back into Ford (F: chart, web, Y!) last week, as the intraday price dropped below my $2.50 target twice, but never closed below that value.  The stock has since traded up significantly and closed the week at $3.25 per share.

I’m still interested in trading Ford, and still have a bullish stance on the long term prospects.

That said, there will be some significant hurdles the company must contend with, many of which are out of the companies control.  The potential bankruptcy of GM and Chrysler may weigh negatively on the company, as labor contracts are forcibly renegotiated along with vendor agreements.  All of which will place competitive pressure on Ford who’s managed to keep their hands out of the government cookie jar, and bankruptcy to boot.

Investing Ford, trading

I cashed in my Ford (F: chart, web, Y!) shares today for a nice 40% gain.  I probably left some money on the table considering the new details of the Treasury’s plan for bad banks, but I had that uneasy feeling that the latest gains from the only well positioned U.S. car maker may have run their course.  For now.

I still feel strongly about Ford’s potential and it could very well be the sole survivor out of the Big Three, Alan Mulally has buy-in from the union and is mounting a strong effort to buy back debt.

I’ll continue to watch the stock and will get back in after a modest pull-back, whenever that happens to be.  Right now I’m looking at the $2.50 range for another trade.

Investing Alan Mulally, F, Ford