Tomorrow, we’ll get a feel of the current strength in the auto industry as the “Motor Vehicle Sales” numbers will be released . It will also give us a feel of consumer confidence and general health of the economy.
Market Consensus Before Announcement (bloomberg)
Sales of domestic light motor vehicles in January sold at a healthy 9.6 million rate, up 2 percent from prior month. Combined domestics and imports rose fractionally in January to a 12.6 million. For the month, sales were strongest for the cars component of domestic units, up 2.9 percent, while the weakest was for import cars, down 6.2 percent.
Few stocks to watch for possible plays on news:
Ford and AXL (click to enlarge)
GM Consider short below 33.27 horizontal support. I don’t like it long unless it gets over $35.
TRW possible short under $55 and long over $59 (through descending trendline)
DAN is on watch for short after today’s dead head fake and failure to move through resistance.