Karpel’s Corner: Cars’ Bullish Move Ahead of DOC Sales Data

Welcome to Karpel’s Corner. This is where I throw out my thoughts on the markets and share some of my favorite strategies. I’ll stay market-focused and  won’t miss any opportunity to teach trading strategies and commentate on the latest trends affecting the financial markets. Hope you enjoy today’s post!

Cars’ Bullish Move Ahead of DOC Sales Data

Ford ($F), Honda ($HMC), Toyota ($TM) and even $GM are on the move to the upside. We are watching the reaction of these stocks ahead of the Department of Commerce’s report on motor vehicles sales for May at 2 pm EST today.

None of these names have popped up as bullish or bearish Tradespoon picks recently. With this distressed sector rebounding in front of the announcement, it is now on our radar. But still not a pick at this juncture.

I like to look at the current implied volatility rank (IV) to get a feel for expectation of movement.  Looking at the IV ranks for $F (22 percent), $HMC (8 percent), $TM (0 percent), and $GM (17 percent), I notice none ranks above the 20 percent range. There is not much increased expectation for potentially violent movement. But it’s worth keeping an eye on the numbers to see if that cannot catalyze the move further.

See you next time at Karpel’s Corner!