General Motors Corp (NYSE: GM) Can’t Go Lower Says Market Timer Frank Kollar

August 4, 2008 (FinancialWire) (By Frank Kollar)

Shares of General Motors Corp (NYSE: GM) closed lower on Friday, August 1, after all of the big U.S. auto companies, General Motors Corp., Ford Motor Co. and Chrysler LLC, announced double digit sales declines.

Our headline says GM can’t go lower. That was tongue-in-cheek such as in Nortel, at $70.00 a share, can’t go lower.

However, with stock prices lower than at anytime in our charting database for GM, a database that goes back twenty years, maybe there is some fact in that title, along with the tongue-in-cheek of course.

With GM closing out last week at $10.23, 8% above its closing lows in early July at $9.38, GM may very well be at a tradable bottom. Although a risky trade, a long position in coming days for GM can be made with a stop below the intra-day lows at $8.81 made on July 15, and there is a good chance those lows will not be reached again.

After all, double digit losses were announced on Friday and all bears could do was push the stock down 7.6%, still 8% above the closing lows on July 14.

This is not a day-trade though. It may take some time to realize profits. If GM manages to close below $9.38, all bets are off and maybe they will follow Nortel down to penny stock status.

Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.

Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.

Go to previous Press Releases & Trading Notes.