GM/PCAR Divergence

hungry_hippo Updated   
An interesting chart, GM and PCAR has historically moved in the same direction, PCAR makes semi trucks. The past year there has been a major divergence between the two stocks.

Something has to give though.... either we go into a recession and PCAR goes down or we don't and GM goes up. Expect this gap to close in one direction or the other. I still think a recession is the only way out for the Fed to get rid of their MBS , not entirely convinced they have the balls to do it.

This is why I've been rather cautious on trading PCAR . Figured I'd post this chart since I've been bullish on PCAR for the past year. Plus the stock tends to be weak after Q4 earnings , usually until Q2 earnings .
CAT missed and GM beat so maybe the divergence closes a bit here in the next few days. PCAR has been trending more with industrials like CAT than with auto like GM/TSLA/F