timwest

GM trending and breaking out of a consolidation

BATS:GM   GENERAL MTRS CO
489 7 2
GM             is trending up steadily and volume patterns indicate that buyers are far stronger than sellers. The sellers dried up at the $25 level and the buyers stepped up and got aggressive at the $25.50 level and gapped up GM             to $26+. Buy any corrections and look for a 10% choppy rally over the month of April             .

Note how the volume dried on each successive price decline. This is a bullish setup, especially now that the price has advanced to the high end of where the sellers started selling. The triangle breakout is a positive, but it could slip back in the next few sessions and test the gap. I want to be a buyer of GM             on pull-backs to $26 and $25.50. Risk down $24.80. Time frame for this trade is 1 month, as outlined.

By: Technical Tim, April             2, 2012 12:18PM EST
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It went the other way on you. Stops are always important. :)
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Disagreed.
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Quick question for you - what did you mean in the phrase above, "Risk down $24.80"? The illustration looks like you will implement a stop loss at this particular price. True? Why not just wait until a potentially much bigger pullback with the market & go for it with a price range even lower than your stop loss. My advice not a question considering you know my feelings already that April is going to most likely bring about a major market correction. If I'm right you're going to enjoy the price even more once the markets find a revised short term support level. I hope whatever you decide works out well for you. With my forecast, I'd go with some puts on GM for now until global market fire & smoke rising now clears later down the road maybe in a month or so. . All just for hypothetical purposes of discussion.
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timwest PRO vin_noto
Stop losses for me are usually 3 average ranges away. So, perhaps I ought to revise my stop in light of that and give this far more room. As for your market forecast, the best thing I have learned is to not have a strong opinion about the market and instead make incremental moves periodically to adjust my positions. I respect your opinion, and I have plenty of short positions to hedge my longs. Thanks for asking and sharing. Tim
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vin_noto timwest
I agree with you to some degree on the incremental moves and for a simple reason - it depends on your investment per equity time range. Day trading vs. a 3mo to +3mo positions time focus may need to vary with each analysis. Again, great chatting with you. I just want to keep you aware of big vs little picture as a precaution. As you already know, if the market tumbles in the short term, chart analysis for particular equity during the tumble becomes almost meaningless due to composite weighting. Going forward, I'll limit my chatter to the chart at hand from now on. Happy Holidays this week!!
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timwest PRO vin_noto
Vin_noto, I don't see any further comments from you. Are you still around?
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GM is dipping right down to the gap-support levels on their car-sales news. 11:41AM EST
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