GM’s Huge gyration of price

GM’s Huge gyration of price

GM’s price swing as wildly as you can get for a so-called blue-chip company (60%+ from low to high). Curiously, by the time it close the day, it backed to where it started. This is neither a non-confirmation nor confirmation action to last trading day's outside reversal pattern. We should just take the face value of what market tell us: volatility, make it huge volatility, will still rule the next few trading days until we get the final verdict on BK filing. This is also what I said last time.

Market is still highly emotional about the perspective of potential bankruptcy filing. At this stage, anything can still happen, I mean, anything. They will probably drag this down to the wire until the last minute of June 1 deadline. (on 6.1 kid’s day? How funny!). On the surface, GM is doomed due to the dissident bondholders. But market’s price tell us otherwise. If the market is so certain about the BK prospect, $1 will be long gone.

So, get ready for another heck of a show ahead. My gut feeling is that even GM can avoid BK filing this time. They can’t escape this “GM gate” unscathed. Someone have to give. That is probably the common holder…