GE - PT $175/$1802+ year consolidation channel has now broke resistance. Looking for an equal size move to the upside.
GE trade ideas
Want To Improve Your Trading Game? Play Poker!In virtually any field of athletics it is advised that you should cross-train in order to both avoid injury and increase performance . For example, Football players are encouraged to take up pilates, yoga, and swimming. Runners can reduce injury and increase performance by incorporating Rollerblading, Barre, and Zumba into their routines.
So what should traders do in order to "cross-train" that will make them better traders, to help them "avoid injury" (as in lose money ) and "increase performance" (as in make money )?
My answer: Play Poker!
Yes, Poker and Trading are both "sedentary" activities where you are sitting at a desk or table. It is the brain that needs to be toned, limbered up, and made flexible, not the body. (Though you need to make sure your body is healthy too!) So it is safe to say that the peak performance trader needs a mental cross-training routine, not necessarily a physical one.
So why is Poker the ideal cross-training exercise for traders?
1: Poker Teaches Risk Management
Unless you're a novice or not seriously playing in a virtual poker App, there's little chance you will go "All In" at the poker table. I can count on one hand the number of times I went "all in" and I won every time. Such opportunities rarely happen. When I did move my pile of chips to the center of the table it was because I knew what was in my hand. I "managed my risk". Likewise, the trader or investor should almost never go "all-in", putting their entire account into asset X, Y, or Z because "the market will market" on you and you will lose it all. In trading terms, you can very easily "blow up your account."
As Kenny Rogers says, "You've got to know when to hold'em... and know when to fold'em."
Good risk management requires that even if you lose say, 5 times in a row, you will live to trade another day. I frequently talk about never risking more than 1% of your account on any single trade . A 5% loss is easy to recover from with two 3-R wins, or one 7-R win. Likewise in poker, with a $100 buy-in, you usually have $1 antes, allowing you to play up to 100 hands (even if you were the worst poker player in the world) risking only 1% per hand.
In poker, only if the "odds are in your favor", that is, you have two-pair, or you have three or four-of-a-kind, or a straight, would you consider raising the stakes to 2, 5, or even 10% of your bankroll. If you can make 20R from a 4R "risk" with the odds in your favor, you are now thinking like a professional trader where Risk Management is "Job One".
2: Poker Teaches Emotional Management
I like to teach that our goal as a trader is to be totally mechanical - totally rules-based. Our goal is to "Trade like a Vulcan" or "Trade like Spock: Trade long and prosper!" What's the poker analogy? Having a " Poker Face ". Or as the old antiperspirant commercial said, "Never let'em see you sweat."
We may have an awesome hand, but we can't display a "woo-hoo" face because no one will bet against us. We may have a terrible hand, but we can't put up a "oh, good grief!" face and let others know that they have even the slightest chance of beating us. We have to play every hand waiting for the last card drawn (the river) because that last card can make or break what we are holding in our hand. And very often it is that last card dealt, "the river", that can make or break a poker hand.
3: Poker Teaches You to Play the Probabilities
Growing up in Brooklyn, New York, I remember the famous slogan from the New York Lottery: "You gotta be in it to win it!" They threatened (coerced?) every New Yorker with "fear of loss" if they didn't play the lotto... "Well, yeah, we all know the odds of you winning are are actually close to zero, but of you don't play then they really are zero so you better play or you will feel more like the loser than you already are!"
Thankfully, the odds in winning at Poker are much higher than winning a set of numbers printed on ping-pong balls, which teaches you that when you have an "edge"... when you have a "system" that has the odds in your favor (a winning trading system) you can't try to outsmart the system – you need to play every hand that meets the criteria of your system.
As hockey great Wayne Gretzky said, "You miss 100% of the shots you don't take." So as Poker players and as traders, we have to play every hand, or every trade that appears that meets our trading plan's criteria, otherwise if we try to "outsmart the market" we will lose every time. And more often than not, even with a terrible hand, say a 2 and 4 of spades, you might find that if you don't fold, every once in a while three spades will appear on the table giving you one of the high-probability hands: the flush . So play every hand . And in trading, take every trade opportunity that appears that qualifies under your rules-based trading system.
4: Poker Teaches You To Stay Humble
My poker buddies and I play every month or so. Early in my tenure when I learned to play poker I realized "Hey, I'm pretty good at this.... I'm gauging the probabilities, I'm keeping my risk-per-hand low, I'm taking small profit after small profit and leaving with twice the money I bought in for or more. Drinks are on me!"
Then I got cocky... Walking into game four I thought to myself "I'm the Vulcan, emotionless, rules-based, odds-calculating poker player, right?"
And that night my proverbial hat was handed to me.
It was one of the worst games I'd played to that point. I over-bid, I bluffed (something I had never done before and my opponents knew it!), and I raised bets on hands I know I should have folded. I re-bought in after losing my original buy-in and lost all of that! And I went home with a valuable lesson: Don't think you can out-smart the probabilities.
The reason we win at poker is the same reason we win at trading. We must always play the odds, we must never play the low probability hands, we must always keep our emotions get the best of us, and when it's time to fold, it's time to fold!"
Last week our poker group met again. I bought in for $50 and left with $135. In trading parlance, that was a 170% return. I was grateful. I learned my lesson. I've got to stay humble and let the hand come to me, let the trade come to me, and never think I can out-smart the table or the market.
5: Poker Teaches You To Set a Financial Target
One of the reasons that casinos give their players free drinks, free upgrades to already expensive suites, and free food is they know that "the more you play, the more you'll pay." You can be up $5,000 for the night, then go get yourself some free lobster tails paired with filet mignon, a bottle of wine, and a decadent dessert. Then you return to the tables all fat, happy, and lubricated and proceed to hand all your winnings back to the House.
I know more than one poker player who has a rule: "When I double my money, I'm done . I may walk in with $500, and when I'm $500 to the positive, I quit and go on to enjoy the rest of my night, otherwise I'll just give it all back."
Similarly, I know many a trader (yours truly included) who may have been up a sizable amount wonderfully early in the trading session, then proceed to give all those winnings back to the market an hour or so later. Setting a daily "win" will prevent you from getting mentally "fat and sassy" where you will become overconfident and then hand your winnings back to the market.
As a Poker player, you may want to make a certain amount of money per game. As a trader, you might want a daily amount of "R" or dollar amount to the positive. In either case, when you hit your goal, even if it's in the first 20 minutes of the trading session you need to close all open trades and enjoy the fact that you did what 90% likely did not do that day: end the day in the green! On other words, "Quit while you're ahead!"
6: Poker Player Are Part of a Vibrant Community Full of Fun People!
Like traders, the number of people who are committed to improving their poker game are few. We need to belong to a strong community of passionate poker players to perfect our craft just as we need to belong to a strong community of passionate (and profitable) traders in order to continually perfect our skill at taking money from the markets each and every day. There are online poker communities you can join (think: Simulated Trading) and there are global in-person Poker communities that can link you up with other players once you're ready to "go live". These communities are generally free to join and will help you build up the skill to become a proficient and profitable Poker player which, more importantly, will help you become an even more proficient and profitable trader.
Is there anything else about Poker that you think needs to be added to the list? Leave a comment below.
As always, Trade well! (And maybe I'll see you at the table!)
"Complex" Head and Shoulder Bottom forming on GE Weekly Chart?Good morning all!
MY thoughts are that Larry Culp's turn around efforts are beginning to bear fruit. With a good earnings report and outlook I feel that this could push GE into breaking out of an inverted H&S bottom and begin moving up. I'm using T. Bulkowski's pattern probabilities from his "Encyclopedia of Chart Patterns" as a guide and added a few thoughts of my own.
I welcome any and all discussion, Bulls OR Bears.
Big Poppa
GE Short position (Effort to become Beta Neutral)This is the type of short that helps a portfolio stay balanced, in order not to have only longs and be exposed to the overall market trend (SPY, DOW, QQQ) some shorts in the portfolio help resilience and reduce variance.
GE is a Large Cap and so the potential of a huge increase in price and a considerable loss in the short position is reduced.
General Electric | Fundamental AnalysisGeneral Electric's $1.45 billion cash acquisition of advanced surgical imaging company BK Medical announced last week would have been something out of the ordinary for GE a decade ago. These days, however, it's much more important. This deal is CEO Larry Culp's biggest acquisition, a leader noted for his ability to acquire businesses, and it should give shareholders certainty in the company's future. And here's why.
First, the deal will support growth. BK Medical makes imaging and surgical navigation technology used in surgery and ultrasound urology. Thus, it greatly complements GE's ultrasound business. That is important because ultrasonography is one of GE Healthcare's fastest-growing businesses. For instance, management has drafted a mid-single-digit growth rate for its ultrasound business, compared to a low- to mid-single-digit growth rate for the entire healthcare business.
Moreover, GE Healthcare is probably the industry that would get the highest rating if traded as an independent company. For example, GE's closest competitor, Germany's Siemens Healthineers, trades at a higher valuation (Wall Street analyst consensus) of enterprise value (market value plus net debt) to earnings before interest, taxes, depreciation, and amortization, or EBITDA.
In short, GE is accelerating growth in one of the fastest-growing divisions and the highest-rated business.
For Culp, taking the helm in October 2018 must have been like playing a game of closed position chess with former world champion Anatoly Karpov. Heavily mired in debt and with limited scope for movement, the open option was to start a series of asset sales to reduce debt while gradually improving the position by repositioning the business.
As a result, GE sold its biopharmaceutical business to Danaher (formerly Culp`s company) for a net price of about $20 billion; its aircraft leasing business, GECAS, for $24 billion; and several others.
It's been a long time since GE has been in a position to make meaningful acquisitions. It worries the industrial conglomerate because investors are relying on management to invest in parts of the diversified business that will grow -- one of the advantages of diversification. That is also a concern because GE tends to produce large products that require a significant upfront investment, such as aircraft engines, gas turbines, wind turbines, and imaging equipment.
Thus, the deal with BK Medical gives investors confidence that GE's financial position is now sound and management can invest in growth. That is especially important given that Culp has built its reputation at Danaher by making some successful acquisitions and applying several continuous improvement and lean management practices to improve the efficiency of these businesses. Investors will hope that he can do the same for GE.
The investment also suggests that GE is unlikely to sell its health care business anytime soon. Former CEO John Flannery (who previously ran GE Healthcare) had planned to spin off the company into a separate company to raise money to pay down debt, but those plans were abandoned in favor of selling the biopharmaceutical business.
In addition, this deal would lower expectations for the sale of the rest of GE Healthcare (imaging, ultrasound, health systems, pharmaceutical diagnostics, software, and solutions).
This makes sense, given that GE will need the profits and cash flow from GE Healthcare to support GE Aviation, which is recovering from the impact of the COVID-19 pandemic on commercial flights, and GE Renewable Energy, which is building its offshore wind turbine business virtually from scratch in 2021.
To be sure, GE Healthcare will face some near-term headwinds due to ongoing supply chain issues, which will likely extend into the first half of 2022. Nevertheless, as Culp noted recently at the Morgan Stanley Laguna Conference, there are no end-market demand issues.
Thus, once GE overcomes the difficulties associated with restarting production, we can expect BK Medical to start helping GE accelerate the growth rate of the healthcare segment to mid-single-digit rather than low-single-digit levels. Given how highly valued healthcare companies are, this could have a significant impact on the stock price for years to come.
General Electric (GE) Bearish FlagsIn this technical analysis, I give you an explanation for GE's price movement. After every major market correction, GE forms a bearish flag. It is my hope that after the pandemic we see another flag. The market corrections are labeled. The percent increase/decrease is measured left to right from the arrows. If you notice in the last two flags, the price hit the top resistance line so I expect this flag to hover around the price of $96. I can't estimate how long the recovery period will take or the percent increase.
General Electric (GE) TAGeneral Electric formed a Head and Shoulders pattern starting on June 17, 2021, and ended on July 15, 2021. This pattern was soon followed by a breakdown. Since then, the stock has been operating in a horizontal channel with resistance at $107 and $98. Look to enter the market around the lower resistance mark.
$GEAfter six months of consolidation work, GE stock has put together a solid technical platform for a pattern breakout to fresh relative highs
As the monthly chart of GE shows, a bullish “high handle” formed against the stock’s 38% retracement level has found support around the mid-pivot of a bottoming and bullish W pattern.
A reaction in shares above the contraction’s high of $115.23 in conjunction with a bullish stochastics crossover should reasonably find GE stock rallying towards $140 to $160 and a challenge of the 50% to 62% Fibonacci zone.
Should the handle’s current low from two weeks ago continue holding and stochastics signals a crossover prior to a breakout in shares, I’d be agreeable with a lower-priced purchase in GE alongside a stop-loss beneath the pattern bottom of $94.56.
Also, when’s we look at the weekly chart (currently chart) you also see we’ve been forming a symmetrical triangle for quite sometime.
We’re also close to the end with the 50, 100 & 200MA coming quite close to each other.
I suggest keeping this on your watchlist as it prepares for its next move.
Watchlist activated.
- Factor Four
General Electric Isn’t Breaking OutGeneral Electric rallied sharply between last October and March. But it’s failed to break out and could now be at risk of rolling over.
The first pattern on GE’s chart is the double-top around $115 in March and May.
Next, the industrial stock slipped under its 100-day simple moving average (SMA) in early July and has stayed this since. That line appears to be turning into new resistance.
Third the 8-day exponential moving average (EMA) is on the verge of crossing below the 21-day EMA.
Next, consider the trio of higher lows near the rising 200-day SMA. This would typically be viewed as a bullish ascending triangle. But given weakness in the broader industrial space and GE’s long-term bearishness, there could be a greater risk of this pattern resolving to the downside.
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$GE - Rectangle breakout watch. Good $115 - Best $135 - Bad $95GE is trading inside a rectangle. The rectangle or side way channel can resolve upward or downward.
Break above $115 is bullish. Break below $95 is bearish.
Breakout point - $115
Mid way resistance - $107
Good Case - $115
Best case - $135
Bad case - $95
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How to read my charts?
- Matching color trend lines shows the pattern. Sometimes a chart can have multiple patterns. Each pattern will have matching color trend lines.
- The yellow horizontal lines shows support and resistance areas.
- Fib lines also shows support and resistance areas.
- The dotted white lines shows price projection for breakout or breakdown target.
Disclaimer: Do your own DD. Not an investment advice.
GE Short, and buy the dipI got GE in meditation yesterday. I think I've gotten it before long ago. Anyway, turns out they have earnings tomorrow morning.
My dowsing and intuitive methods suggest price action as up and then choppy to down for potentially a week. I "heard" to $11 and my dowsing gives $10.75ish. It's pushing 12.95 into the close.
GENERAL ELECTRIC:DETAILED FUNDAMENTAL ANALISYS-LONG SCENARIO 🔔General Electric was once a massive power producer. Back in 2017, turbine manufacturing was the company's biggest business. Then it all went downhill.
A turbine design defect (now fixed) forced potential power producers to put their purchase plans on hold. And then clean natural gas power began to lose its popularity as alternatives to solar power became more affordable. GE's energy turbine revenues are now down to about half of their peak levels. This decline in sales has further trimmed the company's bottom line of profits.
Investors should pay attention to the fact that the company is changing. This could be an indicator that GE's once-great energy business is slowly recovering.
Of course, it's hard to distinguish between organic growth driven by increased demand and growth that is merely the mathematical result of last year's COVID-19-induced outages. For most companies, it's probably a mixture of both.
For General Electric's power turbine business, however, it will likely be organic growth. Utility companies plan million-dollar investments years in advance and then maintain the purchased turbines for 20 years or more. The difficulties associated with time constraints designed to keep consumers at home are not a major hindrance to the power generation industry.
Knowing this fact helps put the chart below in the right perspective. Last year's modest orders and revenues for GE's power division are not the result of the spread of the coronavirus.
Rather, business began to decline in 2018 when several turbine blade failures took out too many GE-made gas turbines. General Electric quickly began responding, but its institutional customers were reluctant to do so until it became clear that the company's turbines would not fail for a long time.
It's also naive to ignore the fact that around the same time that GE turbine blades began to fail, alternative energy sources were undergoing a real revolution, leading to a shift away from old technology and toward investment in cleaner, greener technologies. According to IHS Markit, the rate of annual photovoltaic panel installations more than doubled from 2015 to 2019, more than doubling global solar power capacity, according to the International Energy Agency. It would be surprising if General Electric's energy business didn't face obstacles.
But take a closer look at the chart above. Specifically, note the fact that, at least, energy business revenues and orders stabilized in 2020 - despite the turbulence - during the recently ended quarter. Equipment orders also improved significantly in two of the last three quarters. That's a subtle hint that things are changing for the better, even if most investors don't see it yet.
Of course, not losing ground is not necessarily the same as growing, and frankly, it could be years before GE's energy division approaches its glory days, when revenues of $8 billion and quarterly profits of a few hundred million dollars were the norm.
But don't be too quick to dismiss the potential of this part of the company's business for several reasons.
Foremost among them is that, as reliable as solar power is, it still faces the problem of a lack of overnight power generation. This problem is solved quite effectively with battery-based energy storage. However, this solution still lacks the "instant-on" capability that most power producers need, especially in the extreme heat of summer and the bitter cold of winter. A multifaceted power generation portfolio using all available options seems like the most plausible future.
The second reason to expect demand for natural gas turbines in the foreseeable future is that the world is simply not ready for such a leap. In a long-term market forecast released last year, the U.S. Energy Information Administration predicts that by 2050, 36% of the nation's electricity will be generated by natural gas, just 1 percentage point less than 37% currently.
That's despite the fact that renewables will likely double their current share of the nation's electricity production from 19% to 38% over the same 30-year period.
And to the extent that there will be pressure for clean energy, GE's gas turbines can be made to run on hydrogen, which can be produced with minimal impact on the environment and - ultimately - produced economically. The company believes that all of its turbines can run on pure hydrogen within a few years, making the issue of natural gas's environmental impact moot.
The fact of the matter is that it all shows up in numbers that the company tacitly discloses. As of the end of June, GE's backlog of energy equipment and services totaled $71.8 billion.
That's more than four years ahead, not counting the new contracts signed during that time.
Investors expecting GE's energy business to blossom overnight will be disappointed. The company's customers are not fast-moving consumers. Rather, they are corporations that can take months to decide to shell out millions for new equipment.
But for long-term investors, the electric power industry offers an undervalued growth opportunity that is on par with GE's renewable energy and aviation businesses. This reinforces an already bullish position based on consistent cash flow growth, even if the company is slightly riskier than the average blue chip
$GE with a Bullish outlook following its earnings #Stocks The PEAD projected a Bullish outlook for $GE after a Positive over reaction following its earnings release placing the stock in drift B
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General Electric - Lets rise and shine!-Potential 14% rise!
-Following the trend-line perfectly
-Shares of General Electric Co. GE, +1.74% shot up 4.0% in premarket trading Tuesday, after the industrial conglomerate reported second-quarter profit and revenue that beat expectations, and surprisingly generated positive free cash flow.
-On a net basis, the loss per shares narrowed to 14 cents from 26 cents, while excluding nonrecurring items, GE swung to adjusted earnings per share of 5 cents from a loss of 14 cents to beat the FactSet EPS consensus of 3 cents.
-Revenue rose 9% to $18.28 billion, above the FactSet consensus of $18.14 billion. Industrial free cash flow was about positive $400 million, compared with the FactSet consensus of negative $338.3 million, and the company raised the 2021 FCF guidance range to $3.5 billion to $5.0 billion from $2.5 billion to $4.5 billion. Among GE's business segments, revenue for Aviation rose 10% to $4.84 billion, but was below the FactSet consensus of $5.16 billion;
-Healthcare revenue grew 14% to $4.85 billion, well above expectations of $4.30 billion; Power revenue rose 3% to $4.30 billion to top versus expectations of $4.09 billion and Renewable Energy revenue jumped 16% to $4.05 billion to exceed expectations of $3.87 billion.
-"Momentum is building across our businesses, driven by Healthcare and services overall, with Aviation showing early signs of recovery," said Chief Executive Lawrence Culp. GE's stock has run up 19.6% year to date through Monday, while the SPDR Industrial Select Sector ETF XLI, -0.57% has gained 17.0% and the S&P 500 SPX, -0.61% has advanced 17.7%.
