Just Another Investor Blog
Jounal for another investor
Players: Don’t quit on GM just yet!
What I am saying is don’t quit on the stock, at least not just yet. As for the company, who care? I don’t own any GM car. I don’t have a fond and/or un-fond feeling about it. The people have most at stake are the stake holders, you know, the UAW, bond holders,
There are two more things that still left to be played out for the stock. I repeat, for the stock, not for the company. There are two more days left for the deadline. There could still be more drama coming out from the upcoming board meeting or whatever. In terms of price action, it still hold above $1. If the volatility will come back like I discussed yesterday, stock has anther chance to try a run at $1.60-$1.75.
My past experience taught me one thing is when everyone is on one side of the trade, you gotta take the other side. The risk/reward is just too high here to pass up. Here is the game plan: GM might GAP down again in the morning, put in a limit in the low $1 (if it stays above $1). Once you are in the trade, get out with 50-60% profit in one to two day! Of course, a tight stop just under $1 is advisable. So, you are risking 7-8% of loss for a 50-60% profit. That is what this trade is about.
This is strictly for speculation and a player that know what they are doing.
