AP reports that General Motor’s (GM) CFO says they don’t need $2billions as cost cutting is bearing fruits. Quite interesting, and possibly a good sign for GM’s survival. But I think more than cost cutting, they need to have cutting edge car models and this cutting edge doesn’t mean high tech, but the models that will fit to the pockets and life style of the consumers of tomorrow. It’s not going to be the same world as it was few years back, and before oil reaches to the moon again (i don’t know when), they need to be ahead in the fuel efficient and possibly electric car models and streamline the supply chains. Net, a good news is a good news.
S&P lowered General Electric (GE) long term rating one notch to AA+ from AAA with a stable outlook. They think GE’s capital is under increasing pressure that will result in rising credit losses. Interesting, but, guess what, the stock is up almost +10%.
FSYS, AKS and DDUP Puts are active. TYC and DNA Calls are active.
Have fun, markets are being released from deeply oversold levels. As I mentioned earlier, watch-out for-
Coming back to Dow, the short term buy signal expects it to move further up, and once it crosses 7,286 (round it off to 7,300), the low that Dow registered on Oct 9, 2002, the next logical resistance level will be 7,470. We need to see if Bulls has what is takes to penetrate that level with sufficient degree of confidence as demonstrated by volume.
Trade profitable, Trade Carefully, OP