A reader asked me to analyze General Motors (GM). Although I do believe the $25 billion in loans that got approved will help automakers in the long-term, the short-term doesn't look pretty.
The $9-$10 support level was critical. I say "was" because GM completely broke through it. This is bad because I looked at a chart that goes back to 1970 and this level here was the absolute last support level for GM.
You might get employee discounts on GM cars, but now is not a good time to buy the stock.
3 comments:
Which I pull the trigger yesterday trying to short this thing! Couldn't do it without your confirmation! Maybe I can do that today hahh!! Thanks Bro!
No problem. I am busy throughout the day, so there will be a delay before I get to things, but I do respect my readers and will honor your requests.
The market will gap up today today, about 100-150 points. A breakdown from this elevated pattern may be a short, but I'll have to see what happens intraday today.
I hope the government doesn't bailout GM, we can't afford it.
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