PeakTrader.com

[arthur]

GM traded 52 million shares today, which is about 10% of its shares outstanding. Yesterday, it traded over 34 million shares. Perhaps, just about everyone who wanted to sell, short-term, has sold. GM showed support at 19, and its market cap fell below $10.8 billion. The year-to-date chart shows an off-and-on capitulation over the past three months. GM may be sold enough short-term to bounce just from selling exhausion, accelerated by end-of-the-year window dressing. Moreover, any positive news should send the stock way up. The chart also shows GM is relatively undervalued compared to F (Ford), although F fell from 14 in January to 8. The last time GM was this relatively undervalued, it began a volatile rally.