Chart Request: General Motors Corp. (GM)

I still say GM is junk...even if it does appear to have finally put in a bottom. It's been going down for over 6 years now. And does anyone remember all that debt GM sold to eager investors several years ago? How about all the money Kerkorian is now losing because he giddily bought a chunk of shares around $32/share in a an ill-fated attempt to pump up the stock (and the rest of his holdings?!). This latest rally is eerily similar as it popped the stock right back to that October, 2005 level...which was also heralded as GM's salvation.

don't hold back, tell us how you really feel. :-)

Mike, you might note that both Full STO and ADX is not yet oversold, meaning GM could still has some momentum left and could climb the bollinger band. Then of course this is news driven and if news change everything change.

Looks like significant weakness from GM today. As soon as it broke 30, the sellers came out and dumped as many shares as they could. Look at that negative price action! Any stock that opens at the highs and does nothing but move down shows weakness - especially when that open is a gap up and the volume is 4x norm.

Fundamentally I think GM is a bankruptcy waiting to happen, and I haven't been shy about saying that over the last year or so.

If I had seen the news in real time I'd have shorted it ... shame a job gets in the way of making money sometimes ...

Nodoodahs,

How can you say the stock did nothing but move down? Don't you see that long lower wick? Yes, sellers stepped into it at the open but it bounced back for the rest of the day. (And it was my best trade of the day as a long!)

Having said that, it did make a bearish candlestick, a hanging man, on Friday. But the candle needs confirmation by a close below its low.

I won't agrue with the fundamentals of the company but all I care about is the (short & intermediate-term) trend. Right now it's up.

FWIW, here is my 2cents on GM: Personally, I wouldn't daytrade it because it gernerally doesn't offer much movement. Although, on its recent uptrend, it has had several days of 2 point or more swings. I wouldn't even swing trade it for the same reason. It's a slow mover. However, if I were to trade it either way, it would be from the short side.

This recent uptrend looks like it has reached two downtrend lines: It's major downtrend on its weekly chart since 2000 (~30.75 on Friday); and it's slightly steeper sloping downtrend line since Jan '04 (~29.20 on Friday), which it has slightly breached.

On the positve side, it has (at least for the moment) topped that 2-year downtrend resistance. It has also broken away from a recent symetrical triangle (in a very big way). Additionally, its above its rising 50dma that has recently crossed its 200dma. And, of course, it is still rising within an upward trending channel since April.

It may appear that the positives outweigh the negatives. But, on other big negative is that it IS GM -- an apparent dying dinosoar amidst a potential oil crisis with Hummers and the like on its roster. And, last I checked, Renault and Nissan aren't near the top.

I would take another look if it is able to firmly breach its aforementioned 6-year trendline. But until then, there are many better swingtrade and daytrade stocks for me. But, this is just MY view of it. Use your own head.

BJ,

I agree that it's usually a slow mover and usually a stock that I wouldn't daytrade. Ditto for most large-cap stocks. In fact, they usually don't make it past my volatility or volume surge filters on my scanners, so I don't see them often. But when they do move, they're fair game just like the smaller caps. GM provided a very easy long entry on Friday.

I totally agree that there are easier & better setups out there right now.

P.S. All you guys talking bearish b/c of the fundamentals are making me want to be long it! :-)

Mike,

You're right & I'm wrong, the morning was entirely negative and the rest of the day was positive ... I'm stuck in a mode where I'm thinking longer-term than a day and seeing the day as negative overall rather than seeing a pattern within the day.

That being said, I think gaps up with filled candles and multiple times average volume represent holders taking advantage of any good news to dump shares ... and I see it as bearish.