Sagar Nandi
Why you would not buy, rather, short General Motors.


All the snapshots are taken ~10:40 AM EST on 8th Feb. Numbering in the text below follows the marking on the pictures.

CUE Technical Analysis

Weekly Backdrop chart template.

1) In the weekly chart, GM has displayed a Bear Release signal now and it reversed from a Watermark resistance, creating a false upside breakout.

Daily Entry chart template.

2) Daily has also created a false downside breakout at the Watermark resistance level.

3) GM created an island reversal. It gapped up on earnings and then very next day gapped down. The Gap down day also had the CUE Headwind reversal signal. Candle color flipped from cyan to red without going through yellow, showing the sudden reversal from bullish to bearishness. That was yesterday.

4) Today, candle Flow color has turned even more bearish, magenta color.

5) GM reversed with Extreme Bearish Pressure.

6) And it displayed the Bear Release signal after being overbought for a while, showing that the bulls were giving up and bears were taking control.

CUE Vital Fundamental and Peer Analysis

7) GM has a medium valuation.

8) Last annual earnings growth is negative.

9) Last quarterly earnings growth is also negative.

10) GM's earning quality is poor.

CUE Edge Industry Rotation Analysis

11) GM's industry, Automobile Manufacturers, was weak (magenta). It tried to strengthen for a while, turning cyan, and now is weakening again. Five days industry score is magenta, weak.

CUE 360° analysis outcome

Fundamentally, GM's valuation is in the middle but both earnings growth and quality are poor. The industry is very weak and technicals are also weak. It is best to avoid buying the stock now. If you have a long position, you might book profit or hedge the position. And you may look for a shorting opportunity.

GM chart.jpg gm VITAL.jpg GM EDGE.jpg 
CUE Elite
CUE Global & CUE Finder
CUE Edge, Vital, Index
Metastock Software (One-Time)
Metastock Data/Subscription
Data Region