I've been slacking on posting charts here lately, sorry about that. So to try and make up for it, I've decided to post a chart a day for at least the next week. Things are starting to get interesting for the first time in a while from a technical standpoint, so I don't expect to have any trouble finding charts. I'll post some nice breakouts, some common big patterns I'm seeing, and some charts of stocks with news. The usual stuff I guess. Tonight I've got two to kick it off.
First is GMGMQ, which is the new ticker for the bankrupted Government Motors. All I have are questions about this one...
- if GM is bankrupt, why is this a ~$1 stock?
- when GM exits bankruptcy tomorrow, is this the new co?
- why is the sept. $1 call trading for $0.13?
- wtf?
Next I've got CIT "group," which also has that zombie look. The CIT chart below is on a much longer time frame, a three year with weekly candles (as opposed to the sixmonth, daily above). You can see that $1.65 has been an area of support for the past nine months or so after a multi year decline. Well today CIT got some bad news from the FDIC and its trading below that *key* level in the after hours.
You couldn't pay me to touch this stock, but agressive traders might try and short it at or above that key level. Although given the news, it might not ever see $1.65 again. On the other hand, I would have said the same thing about GM...
2 comments:
That Sept $1 call was up 123% today to almost $0.3, yowsa!!
http://finance.yahoo.com/q?s=GMIV.X
Every indication that I have is that this stock (GMGMQ) will be canceled at some point and they will do an IPO for the *new* GM. So why does the old bankrupt GM still have a $700M market cap? This market is bizarre!
If someone can explain this please chime in.
CIT hires a bankruptcy advisor....
http://www.calculatedriskblog.com/2009/07/cit-hires-bankruptcy-adviser.html
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