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I would recommend claybarring the whole vehicle first. This will take out all of the embeded contaminants and leave the paint feeling silky smooth. Next you want to use a polish to bring out more shine and reflection, take out light scratches and swirls, and to prep the paint for your wax or sealant. The polish should also take out your waterspots. I would go with my Light Polish for this. Then just top with a wax, my Wet Wax or Wet Obsession would look awesome on that color blue. The Wet Obsession is my high end carnauba wax, you will get the best looks with it.
For the nicks, you should go to your local Ford dealership and get some factory touch up paint. You want to do thin multiple layers to get it to come out the best.
You can only do so much paint correction by hand, a machine polisher is really required to get your paint looking its best.
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