I am not a smart man... but I know what trading is
Monday, February 1, 2010
Is Toyota a buy?
Down 12% last week and now rebounded 3.2% on news of a "fix" for the accelerator. Pro: Toyota has a lot of brand loyalty and this is their first significant recall. Con: Toyota is purchased for safety and reliability, not image, and this is a big blow to that brand. Also, macro environment for autos is suspect and it trades at a 24 forward PE, well above competitors.
Daily shows nice bounce... or is it a bear flag?
On the 10-minute, we see a bottoming pattern and gap that could be filled.
Buy above $80, but by macro market view is still bearish.