I am up a few handles on my General Motors short, announced on this blog earlier in the week and inside the 12631 Trading Service.
The firm has been in the news of late, trying to clean itself up, so to speak.
But price tells the real story.
And updating the daily chart, below, I am going to retain and even add to my short despite price gapping down below the lower Bollinger Band.
My reasoning is two-fold:
- The stock lost major $34 support and will likely close below it on a weekly basis, even more of a bearish sign
- The Bollinger Bands, seen on my daily chart, have been “pinched,” indicating a large, directional move is imminent. In my view, that circumstance trumps the fact that price gapped below the lower Band (indicating short-term oversold conditions).
My cover-stop loss remains above $36.
Earnings are 04/24.
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Think we test 200 on S & P this time?
Yes. That has been at the heart of my market posture for a while now.
Hi Chess,
Thoughts on CMG as a short?
Under $530, Mary.
Thank you sir.
You bet
Nice position you got there. Great example of why its better to short stocks that have been falling the past 1-2 months versus shorting something like SPY
The strong ones will succumb.