GE weekly - buy candidateToday's technical profile looks similar to 2003 and 2009. Waiting for a buy signal some time around year end. Aggressive investor can start to accumulate with 5-10% stop.
GED trade ideas
GE slowly reaches the end...Nearly two years of decline can be completed. In the exchange rate, it is possible to identify a so-called 2 and a half wave sequence that follows the exchange rate steadily during its two-year course. Therefore, there is no reason to deviate from this. This means that the wave structures in motion (regardless of the direction) consist of 2 whole and half wave structures. Of course, this is the distance of the ATR of that particular motion side. If we start from this mathematical model, it can be seen that GE's rate is based on the last decreasing wave structure. The target price may end somewhere between 8 to 10 usd. We are expecting a rising structure from there. GE's more distant target is 25 usd. Therefore, in this hope, you need to enter trading.
Do Not Argue With Sellers – Celebrate With Buyers: GE EditionGeneral Electric (GE) dropped 4.0% for a fourth straight day of high volume selling. At $11.27/share GE sits at a stomach-churning 9-year low.
GE’s early June expulsion from the Dow Jones Industrial Index seemed like such natural ignition for a bottom that even CNBC’s Jim Cramer got off the fence to declare the stock a buy. At the time I proposed a lower risk method of playing a potential bottom using call options. The call option configuration certainly helped ease the pain of the recent 9-year lows. Still, with selling accelerating, the temptation to consider the conditions for a bottom is too great to resist. Sure enough, Guy Adami on Fast Money offered his keys for determining whether GE (or any stock) has indeed finally reached bottom:
A new 52-week low on heavy volume: this action can indicate a wash-out of sellers.
Management is up-front and addressing the problems with the business: hope remains the company figure things out.
The company remains in a viable industry: the business and economic environment still gives the company time to turn things around.
I like Adami’s points. However, the title “how to catch a falling knife” is telling. Traders and investors should not actually reach out to catch a falling knife. Instead, they should step in when the risk of catching a knife is sufficiently low to make the risk worthwhile. In other words, I prefer to wait for “confirmation” that the falling knife has finished falling; I want the ground to catch the knife, not me.
Two years ago, I described this confirmation process in a piece titled “Do Not Argue With Sellers – Celebrate With Buyers.” When sellers have firm control of a stock, I want to wait for a some sign of buying like a trading day with a gain. A stronger confirmation occurs after buyers manage to establish control of the trading with a complete reversal of the most concentrated part of the sell-off. My only rare exception to the confirmation rule occurs when I have a strong conviction from some data or analysis that puts me in accumulation mode.
In the case of GE above, a close above $11.80 would be the first potential sign of a washout and exhaustion of sellers. A close above $12.71 would signal high odds of a complete washout. Since I already have a position in play, I am content to wait for this more definitive confirmation. Shorter-term traders should stop out of their long positions if GE manages to close below the latest low of $11.27. If GE closes at fresh lows, then the first signal of seller’s exhaustion adjusts downward to whatever closing price clears the intraday high of the last day of high-volume selling.
GE will continue to capture the imagination given its iconic status as a symbol of America’s industrial past. Now we wonder whether the future is waiting for GE as it sinks in stark contrast to the strength of the American economy and the near relentless up-trend of the S&P 500 (SPY).
Be careful out there!
Full disclosure: long GE call options
$GE | Down But Not Out | Great Buy Coming UpGeneral Electric is fast approaching a major support level defined by my model and supported by historical levels. This will be a great long term buying opportunity.
short GE and cover back at 10.5GE is in the downtrend channel, short it
Target profit at 10.5
stop loss: 12.1
risk reward ratio: 1: 2
GE - Another Short Teaser?This a follow-up to the GE idea about the downtrend it started on May '17 through May '18. GE just broke down another support level at $12.60 after failing to even test the $14 mark. Right now the support break tells us that the stock is still weak, but it is still a little early to call it a bankruptcy confirmation. The stock is weak and would not be a great idea to buy now, whether to trade or to invest, but even though it looks short the downtrend has been stretched out for a long time.
Single digit numbers (below $10) would be really interesting but sad if it happens. Just like before, if GE holds below its $13.50 level and makes a correction to the downside, it would confirm my bias about poor performance based on the price action. As short as I am on this stock, it is still only a waiting game until a further sign of weakness appears.
Again, let's keep watching GE till about December to see if it makes up its mind. We will see how this plays out.
GE - Pressure remains to the downside!GE has suffered enormous pressure to the downside as everyone is aware. Money Flow and RSI are at lows not seen even during 2009.
As the saying goes “the bigger the drop, the bigger the need for repair.” Ex - all items, GE’s cash flow has not grown since 1994.
Just back 3 - 4 years ago GE was producing ~ $24 billion in cash flow. Using Basel III agreement TCE ratios, GE is underfunded
by ~ $53 billion as of 3rd qtr. 2017. Assets need to be sold and equity add to the books!
Valuation: Using ex-item numbers, GE produced ~$ 8.5 billion in cash flow for 2017. Applying a generous 2% growth rate the
Intrinsic Value Buy price is $6.50 and a Sell at $16.
Target of $8.
www.tradingview.com
General Electric, you be the judgeAfter GE divested many parts of it's conglomerate, it seems like they have been preparing for this sell off. You be the judge.
A close look at General Electrics 'Situation'GE has a yearly pivot point at 7.56, which it looks like it will hit. But I think it breaks down even further.
General Electric is heading far lower. Worth $5. General Electric is breaking down fundamentally and technically and it's time to dump this crap. Shares need to be sold to $5.
Good risk to reward hereLeveling off and preparing to finish the year strong? I think so.
But it isn't about being right or wrong. It is about making a decision and knowing where you are going to get out before you take your position. NYSE:GE
