GM’s outlook – hands off – it may be too hot to handle

GM’s weekly chart shows that it’s too early to buy it, as we have not clearly hit a bottom yet and the count says at least 2 lower weeks required. The outlook by fundamentals is disastrous but it may be too big to fail on the political scale but that is not necessarily good for stockholders equity. It can drop by all means far below 5 and it’s hard to see going forward how it will economically survive and, if it does, it will be a long and painful development. They had problems in the good times and now with a deep recession and looming big financial problems ahead, it’s not a stock for your 401 account at all. For speculation short-term, we have to see once the 13 is in. But at that point of time, many stocks will be interesting. We make some groundwork which stocks may be best suited for the 2-3 month rally in the next 2 weeks. GM should not be on your regular shopping-list since the fundamental story is very weak, to say the least.

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~ by behindthematrix on October 18, 2008.

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