I posted a blog post today looking at some Google search volume analysis around auto sales and specifically Ford.  I think it gives a bullish case for Ford stock over the next months/years.  Here is one of the charts on it (click for a larger view):

What you see is first of all how the search volume for the terms “Ford Dealer” and “Toyota Dealer” correlate well with the actual sales numbers.  I believe this is because people use the internet for researching a car purchase and then for looking for a dealer.  I think the google search volume can be used this way to help an investor for companies that are highly retail driven to get insight to the underlying interest into the company and its products.

Second, what you see is how a year ago, Toyota led Ford in search volume in sales but in the last 6 months, Ford has reversed that situation, now Ford search volume is higher than Toyota and so is sales.  Ford’s search volume continues to look strong too and I think going forward tracking this chart would be good as an investment tool.  As long as the search volume for “Ford Dealer” continues to go up, it is a bullish sign for Ford in my opinion.  You can read more on my blog post on the technical details and also some more confirmation of this method.

But on to the trading perspective.  Here is a simple marked up chart for Ford:

It has had quite a bullish run over the last few months (as the google search volume has increased).  The volume has been very bullish during this run up and now it is in somewhat of a rectangle consolidation.  I think that it could be a good buy here but if I buy some I might wait till it breaks through the top of that range like over $6.50.

I consider this a long term trade more fundamental in nature with the Google search data as the insight into the sales fundamentals.  As long as the google search trend keeps going up or at least holds steady I think it bodes well for F.  But if the google search date declines then I would look to bail on it.