4GM trade ideas
Time to Buy $GM?Probably yes, but the chart still warns a possible leg down from here which may be even an opportunity to buy. When it comes trading, its all about your time horizon or time-frame for the trade. If u want to quick in/out trades you just need to have set of indicators, u will have a good chance to win most of the time. Here, the recall had strong effects on the company's bottom line as we have seen last week's earning. With all the drama surrounding the recalls and how long it will continue, the company still managed a strong sales, significant growth in China, strong balance sheet, positive free cash flow plus a great dividend. With these in mind, price hovering technically above May low n above recommended 25% projected bounce, we still another retest of July high. Stay tuned to see more like this and follow us.
General Motors GM Daily - How to Capture Trend Using Range MovHow to Trade - Steps #1 through #4
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#1 - Calculate the Trend - Up or down
#2 - Wait until a low-risk time to enter
#3 - Calculate how much to trade (fix your % risk to the distance to the stop loss order)
#4 - Know when you need to exit (3 average true ranges, 3rd range upon entry, CCI readings +100/-100)
GM is in a long position using this handy methodology:
So, #1 - Track "Range Movement" and if it hits a 60-day high or low, that is the trend.
#2 - Then buy turning up from oversold in uptrends. I use 21-day CCI under -100.
Or sell turning down from overbought in downtrends. I use 21-day CCI above +100.
#3 - If you have $100,000 in your account, risk 1% per trade (one possibility, but I'd suggest 1/2%). Buy or sell enough stock to lose the proper amount of your portfolio if the stock hits your stop loss. If you risk $1.00 per share, then you'd buy/sell 1000 shs.
#4 - Exit: Target the opposite end of the CCI spectrum. Buy @ -100, sell at +100 on CCI(21). Sell @ +100, Cover @-100.
General Motors GM Daily How to make money the old fashioned way.... I know the saying is "...to earn it." Courtesy of EF Hutton's famous 1980's tv commercials. But in some ways this is EARNING the money because in order to make this profit you need to become the insurance company. Being an insurance risk manager is a full time job and this trade may seem boring, but it does involve some risk.
The key here is that you have to have enough money in your account to stand ready to buy the shares of GM at the lower price, in this case $27/sh. Every contract you sell, you earn $0.55 (current bid) or $55 and you then are obligated to purchased shares of GM for $2700 until December 20, 2014 when the contract expires.
That is more than 20% below today's prices and at that level you would be earning a 4.44% dividend yield, which is very attractive. You would also be buying GM shares at the same price that the company stands ready to buy them for their treasury account. I think that makes sense to me.
The $55 earnings is what you earn for insuring against a severe market decline. GM has already declined from an outlandish $42 a share in December and touched as low as $32 in the correction.
I think this $55 return is better than holding T-Notes.
Sometimes boring is good. This is a limited-return, boring strategy, but it works.
Consult your financial advisor to see if it is right for you.
Tim 10:53AM EST 5/12/2014
General Motors - Weekly and Daily say shortI'm not going to take this trade, as I am allready short the Nasdaq, CME and long Gold, and I think it's enough.
The correlation between the overall market and the GM Company alternates. It switches from long periods of correlation to long periods where they move in different directions over the weekly charts but swing together on the daily chart. Last months there was a strong decorrelation. The S&P is close to its all time highs, but where is GMC?? This is a clear sign of weakness.
The weekly chart of GMC shows weakness too, notes are on the chart :
On the daily chart, there is a return to the Wave, a falling histogram and a divergence on the sensitive 2 day FI. Volume was very light during this rally.
Even though I won't be trading this, I will set up a trade plan so I can fully review this later.
1 - Get long tommorow at the best price possible, below 35.30.
2 - Set a stop at 35.90.
3 - After a close below 33.50, move stop to breakeven.
4 - Take some profits at 31.80. Move stop above 33.50.
5 - Take more profits at 30.40.
6 - Keep a small part of the position with a stop under the closest daily swing high, targeting 27.
7 - Add only under 31.80.
General Motors GM DAILY EXPLOSION PATTERNI can't add text to the chart at the moment - but I didn't want to miss posting this idea.
It looks like GM just can't rally despite the surge back up in Ford (F). GM is struggling with the recall news and liability and lack of confidence issues that could arise from not changing out a cheap part.
The 3 green lines mark the level where GM said they would buy back shares. So, I give that the bottom of the range. The upside is perhaps a retest of the peak there at $40. You can see the massive distribution zone marked in red that could easily be the liquidation by long term holders. For now, we have to assume that is what has happened, especially because the price is below that zone (the volume weighted average price of that time zone).
I think it is clear that GM wont be at this price in the next 6 months. It will be either 15% higher or 15% lower, as I see it. Maybe that is a bold prediction but this chart pattern together with the news flow tells me this is what to expect.
If you go out to June (3 months) and buy both the 34 strike puts and calls, you will pay 3.72, which means the market is expecting the price of GM to be +/- 3.72 from 34 by the 3rd Friday in June. 30.28-37.72 is quite a wide range.
I think it makes sense to own both sides for a month and see what happens. If one side makes a big move, we can take a stock position to offset (buy on a dip) or just leg out of one side of the trade.
Tim 11:57AM EST 4/2/2014 GM 34.54 last
GM is setting up for another nice run towards 40GM is setting up for another nice run towards 40. As pointed out on my chart, back in October when MFI bottomed out at the 15 mark, it led to a 2 month run to north of $40. Now, once again, MFI have recently reached the 15 mark and also bounced right off of it. This is a strong bullish indication of a move up in stock price.
OBV chart seems to have flatten out and the Accum/Dist chart is showing a slight increase. Meaning we are starting to see some accumulation of GM stocks at slightly higher prices. This is a neutral/small bullish sign for GM. I would like to see a continuing upward trend for both these charts.
Furthermore, according to the classic MACD chart, 12-day line just recently crossed the 26-day line, which is always a good sign for the stock.
GM has a big trendline around 36.The "make or break" trendline for GM is around 36. That will determine if GM begins it's own private bear market.
GMGreat action on GM. I love the upward momentum with high volume. The price that "sits" firmly on the yellow SmartPoint band is also a sign of strong support.
Now I would prefer the stock to consolidate a little and form a firm base. Then a resume of the rally will have more sustainability.
GM 12/5/13very bullish overall on $GM they have been running for almost 2 year and has finally reached its previous top..but this time its different as the fundamental story works as a great catalyst for a move to the upside!
(if you don't know what the catalyst is google it)
GMGM and BIDU have surprisingly the same looking chart, which leads to the conclusion that the same analysis applies here. Accumulating buying power that waits to be unleashed. Overall it's a bullish looking charts unless prices start to drift below the SmartPoints middle band and through the near PivotBreak purple line.
GM ready to go?Contrary to the market performance, GM has not done so good so far. It has consolidated over 4 month lagging the market.
Now though, the picture seems to be changing a bit. Recently, GM has pierced through the rock solid $38 level, and seems comfortable, with no signs of reversal.
Using the PivotBreak and the SmartPoint indicators shows us a bullish formation that could lead eventually to a real breakout. We are still bullish above the 39.20 level, indicated by the yellow pivot line, an indication supported by the positive channel in between the smartPoints bands.
General Motors looks promisingPrice Target: $38
Ascending triangle pattern(bullish). The trendline has been tested various times and has not been broken. Right now the price just bounced of a fib line and I expect to keep its upwards momentum. The MA's and the MACD do not give very bullish signals but I believe this will correct itself in a couple of days. The Parabolic SAR gives a buy signal. I expect the stock to break the ascending triangle's resistance level in the next couple of days but if it doesn't it will at least reach the resistance line. The line is around $37.50 which is also a good price target. The reason I have my price target at $38 is because of the fib line and that is the level where the stock has peaked already a couple of times.
** Today i'll post an article where I delve in more in the stock. fonzotrader.com
GM: multiple bearish divergence and one bearish scenarioThe multiple bearish divergence on price momentum and volume warns of a reversal
This chart looks promisingSolid uptrend and trendline. The stock gaped up today probably because today there was a huge bullish sentiment. Most of the stocks went up. Probably by tomorrow this will correct itself and the stock price will return to its trendline and continue the uptrend. Since September the volume has been rising constantly. My entry point is at the small circle and my price target at around $37. It would take more thank three weeks for the stock to reach this price. The stock continues to have higher highs and higher lows. This is a solid company and I see a great future to it.
