I noticed GM is pretty weak this morning, but as planned before [1], I bought in some GM shares below 1.20 to test some water.
Here, I want to compare the charts of GM and BAC before in March, see below.
My conclusion is:
- technically, GM could run up to $4, or more and become the next BAC, 5 bagger from here
- fundamentally, GM is in a worse situation.
Nice run up on GM now, 1.46 already
ReplyDeletetiger
Nice chart, thanks
ReplyDeleteTiger,
ReplyDeleteThere are a lot of uncertainties in GM. Hard to play
just with chart.
TA
From the chart, if GM can not hold very well above 1.25, we should exit.
ReplyDeleteTiger
1.65 so far. My goodness!!!!!!
ReplyDeleteTiger
what a nice intra day reversal on GM. 1.71 so far.
ReplyDeleteTiger
Tiger,
ReplyDeleteCongratulations. Nice entry of GM as you planned. But I am afraid of it.
TA
Good luck with your GM bet.
ReplyDeleteDoubled down on QID at 35.50 .. AVG is now 36.75 . . (Damn that seems so far away) .. May AVG down again ..
ReplyDeleteI wouldn't touch GM either.. Considered it at 1.15 this AM .. but just couldn't push the button. .
Sold BIO 75.10 / Bought QID 38 / 25.5 / Sold DUG 20 .. were plays today.. not sure I can stomach much more of my losses on FAZ / QID haha.. for the day at least..
Going to jump into TBT .. prior to close.
Ben,
ReplyDeleteTBT looks fine.
I don't think averaging down QID or FAZ is good. Be careful.
If some good news out, GM could easily run to $4 -$5. the key is GM needs to break out the 50MA which is about $2 now...
So once GM breaks out $2 successfully, many traders will rushed in and push GM higher and may to $4-$5 at least...
Should exit quick, if you plan to play GM.
Tiger
As of 2:25 PM ET 5/26/09
ReplyDeleteShares of General Motors (NYSE:GM), which hit a low of $1.12 this morning (down 22% vs. Friday's close), have reversed their decline and are now trading nearly 2.8% higher to $1.47 after the Wall Street Journal reported that the United Auto Workers (UAW) union said that the U.S. Government will provide "massive" financing assistance to help GM restructure without liquidation. The reports came shortly after the WSJ reported that GM had made an offer to the UAW healthcare trust (VEBA) for up to 17.5% of the company in addition to notes, preferred tock and warrants. The WSJ also is reporting that the UAW will have the right to name one member to GM's Board of Directors.
Make or break week for GM
ReplyDeletehttp://money.cnn.com/2009/05/26/news/companies/auto_timeline/index.htm?postversion=2009052614
took some profits on GM, and plan to let the free shares run for a while. Nice trade on GM today. Quick jump from 1.25 to 1.84 in 45 minutes.
ReplyDeleteTiger
I forget who said it.. but one of the best quotes i've read is "If your investments make you want to puke, it's time to double down" ..
ReplyDeleteThat's what QID did today :) .. 35.50 .. is a GREAT entry .. no technicals pushing markets up.. and again we have an up day on missed volume.. notice the trend? Up days miss volume, down down pass volume..
It's not a coincidence.
Ben,
ReplyDeleteHope you are doing well. QID is not an individual stock, the longer you hold it, if the market doesn't drop continuously, you may lose money on it...
IF QID can not hold 35 well, it may go much lower...
More analysis, tonight.
Tiger