General Motor (GM) will be Neutral I believe that GM will face resistance @ $ 38.60 level. It will not break that level and maintain a neutral level between $ 38.60 - $ 36.
Note: I am not a financial advisor. Trade at your risk.
GM trade ideas
GM Powell Speech BetTwo Fed members have already signaled a reluctance to cut rates in Sept, but the market decided to melt back up today regardless. The Big Kahuna, Powell, talks tomorrow in Jackson Hole at 10am EST. Appears there are some that are expecting him to pump the market again because he did the last 3 speeches. Based on Fed meeting minutes and the other members, I don't see him pumping tomorrow.
The plan is to buy puts now (half in case it continues the melt up), add tomorrow on open before the speech. Weekly GM options are cheap and have good liquidity. Note that this is basically an all or nothing bet, if the market goes up, you lose it all.
Auto manufacturers are very rate sensitive, another option would be XLF (financial ETF). When betting for or against the Fed, find rate sensitive stocks or ETFs that have good liquidity and low premiums.
Note: GM has a bear flag going
GM UndervaluedGM has shown an ability to outperform both the S&P500 and the auto industry, recording an 8.25% increase in the last year. In addition, their dividend payout provides for a steady stream of income at a yield of 3.79%. In terms of continued profitability, GM has enough cash to push through tariffs and increased competition, and is trading at a relatively low P/E ratio of 6.53, and is expected to increase EPS by 6.143%. Because of this combination, I have a price target at $43.94
GM Double BottomThings got oversold and we got an afternoon pump. I think the market wants to close the gap by Friday, you could've gone long on anything and made money. Market moved quicker than I could post, already dumped some of my long positions. I think tomorrow is gonna be a small up day. Holding a few stocks overnight.
I like playing with GM options, premiums are small and liquidity is good. Holding weekly calls overnight.
$Gm Can GM follow Fords leap higher?. Fords jump on earnings last week has increased speculation that GM may follow in its footsteps. Looking at the long term chart the trend would be higher but faces strong resistance at $41.50 - $42 , until that level breaks on considerable volume we are not convinced. Ford took some radical moves over the last year to cut costs, reduce inventory and product ranges that were low margin. GM however is trying to be all things to all men, this may be critical on the earnings report and effect profit margins. Automotive is going to face shrinkage in the decades to come and innovation will be the winner long term, it is a very difficult sector to invest in with conviction.
GM Inverted H&SThe pennant was obviously a reversal pattern at this point, got a back test this morning and formed somewhat of an inverted H&S. In for some calls for a short term trade (probably until Monday).
I'm bearish but money flows into the market in January, just like last year. More so because they took the money out last year, so the money has to go somewhere.... which is right back into the market.
In any case, GM options have cheap premiums and good liquidity.
GM Forming Another Pennant?Played GM calls for the gap close today, but I'm guessing this forms another pennant then drops like it did last Feb. Who really expects autos to do well when everyone's calling for a recession?
Buying puts if it throws a reversal pattern Friday or Monday. Guessing the computerz will jack the futures up tonight after losing money today. You know it's a short squeeze when crap like MNK goes up.
SPY target is $256 so it'll take a couple of days to get there.
GM long idea: General Motors a buy at 33 look for 42The auto industry has been clobbered due to Trade Wars.
China just released some news about reducing tarrifs on US cars going into China.
GM has a huge portion of its market in China, so now is the time to long it.
Technially, this asset this key fib levels on the way down, and bounced where it should have.
Now the bounce has retraced to a perfect spot that should serve as support
