This is a major speculative idea. I have been waiting for several weeks watching and waiting and today it began to form. Are we seeing what I think we are seeing? A major bullish divergence? Let’s watch and see. Price points of interest maybe cracking 1.27?I hope it goes to a $1…Am I too early? It looks like it may have a little more room to run on the downside but I am not sure of how much it can run…Although one thing I know- It will either GO TO ZERO or snap back to life…
Thanks,
Eric F
Yes, there is a divergence in phase C. On one hand, It could jump from 1 dollar to 2 or 3 dollars and you could triple your position. On the other hand it could go from one dollar to 50 cents and lose 50% of its value before bouncing back possibly like AIG did.
ReplyDeleteMy point is that It is one of the most risky stock on the market and playing GM is like playing poker because you depend heavily on news of a possible bankruptcy. Right now, the market is full of divergence (See inverse ETF for instance: DOG, DUG, FXP, SRS, etc). You have choice.
Eric,
ReplyDeleteGM is clearly in play by forces much bigger than technical or fundamental analysis, which are graphic examples of crowd behavior, or analytical projections of a business model, respectively. Logic says the most likely course of action is bankruptcy to restructure the union contracts. Once GM goes into bankruptcy, you can probably pick it up for 50 cents and bet that it will eventually emerge.
Revelation of GM's bankruptcy plans may have broad impact. Plan due by June 1. Charts may not give the fullest picture right now.
ReplyDeleteOne version of events I read suggested bankruptcy might be avoided by converting preferred shares or bonds to common shares at 40 cents a share. This struck me as important since the common sense expectation of share appreciation if bankruptcy is avoided, would then not apply, and shares would suffer instead, as indicated in Grant's comment.
WOW What a day for a day trade! In near $1 out for a 30% gain! Who would have thought! I'd rather be lucky than good!
ReplyDeleteDisclamer: Still long my core postion from yesterday...
The chart is still looking good! But then again that is just my opinion. Who knows what is going to happen! That is why it is a major speculative play!
Good Trading,
Eric