Ferrari (NYSE:RACE) Shares Driving Higher

Ferrari (NYSE:RACE) Shares Driving Higher

Ferrari (NYSE:RACE) Shares Driving Higher

$RACE

Ferrari (NYSE:RACE) shares have come off their 27 July 2016 lows at 37.41, and are driving higher, headed to all time highs

Ferrari is a Bullish proxy for the high end market. The prevailing sentiment is that the high end market will continue to do well as long as asset prices continue to rally.

For the 1st time since the Y 2008 financial crisis, people are truly optimistic about the economy and that translates into economic growth.

Ferrari serves the high end market and as long as asset prices continue to increase in value, the high end market should continue to do very well, since they benefit from higher asset prices.

1-race

Ferrari as a stand alone public company started trading in October 2015 and hit a high the 1st day it started trading at 60.97/share.

By February 2016, a few months on, the stock was cut in half and plunged to 31.66/share, bottoming and spent the next few months moving higher.

Last Monday, 1 day after the No vote on the Italian referendum, it hit a new 52-wk high at 55.59/share.

Investors love new opportunities, especially in this environment where most IPOs have not performed well.

Ferrari reminds us of how Facebook (NASDAQ:FB) traded immediately after its IPO. Facebook if you recall dove 60% in the 1st 3 months after its IPO.

Then, in  the Summer of Y 2013 it exploded to the Northside, and has not looked back, that action was 1 year in the making.

Ferrari is now entering a similar frame after its IPO in October 2015. Further, you must  keep in mind is that Ferrari’s earnings are growing and investors love to see this growth from a well-known company that makes money.

The fact that Ferrari has broken the Key resistance suggests it can continue to driving higher from here.

Symbol Last Trade Date Change Open High Low Volume
NYSE:RACE 56.88 9 December 2016 0.11 56.82 56.95 56.78 271,600
HeffX-LTN Analysis for RACE: Overall Short Intermediate Long
Bullish (0.35) Bullish (0.34) Bullish (0.42) Bullish (0.29)

Have a terrific weekend.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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