I was wondering if anyone can give me some clues on how to interpret action in F today. If you look at the Fords chart it looks very similar to the GM chart, almost as if they were pair trading. Do you think this is a one day IPO phenomenon or something that will be more common from now on? It does not make much sense to me why Ford got crushed today, if anything this IPO should have made it fly. Thanks in advance for your replies.
It could be a case of Money flowing out of F as GM becomes a choice of speculation here. Thats all !!
Look at how far Ford has come in past few months. Today's pullback has no significance in the overall scheme of things. Given that one of Ford's competitors has just been handed a boatload of money, a pullback today is completely natural and expected.
Personal opinion is that F was being bought in advance of the IPO and was unloaded into all the euphoria. Cramer said one of the best ways to play the IPO was to buy F today (on yesterday's show). Just another indicator that it was time for a pullback.