Goodyear May Have Had a Good Q4, but I'm Not Buying

Now, with the positive profit and sales increase, prospects for the business should probably be put through a fresh analysis. In fact, Joseph Lazzaro believes 2010 and beyond may offer happier times for the stock.

My gut is telling me the stock may have some upside potential as well, but in this specific situation, I'm willing to engage opportunity costs in the interest of a cautious approach.

My read of the chart shows a business that may have a tough time trending higher given current market conditions. Although I would much rather buy low than high, sometimes you have to appreciate technical strength, and the concept of purchasing after a new 52-week high has been achieved.

That's where I'm at with Goodyear. Shares are currently below $14. The 52-week high is a little under $19. I'd be more confident after witnessing some momentum.

So, yes, while I do categorize the quarter as one to be praised, my preference is to stay on the sidelines and look for other opportunities. I just don't feel forced to consider Goodyear until I see more support for it in the market.

Disclosure: I don't own any company mentioned; positions can change without notice.