Sometimes we don’t need a chart to make a trading decision.  The rescue of GM is one of the great sagas of American business and those who criticize it are economic Know-nothingss.  Now a restructured GM is coming back to public trading.  We are completely optimistic about the future of GM.  It is tied to the economic future of the country.  We think anyone who doesn’t buy GM at this point will eat their hearts out in 5 years.

At the same time we are not certain that the offering price is a good deal.  The way we would play it is like this:  If you could get your broker to allocate you some shares you should take them.  If you can’t we’re not sure that’s a bad thing.  We wouldn’t be surprised to see the stock run up and then sell off.  When the sell off has exhausted itself we’ll be looking to buy.

To do this we’ll be looking at hourly or thirty minute bars.  If we got shares at the opening we would put about 1/4 of our line out, then, if there is a sell off we would double up.  After that we will manage the shares using weekly basing points.  We may see some volatility — in fact expect to see some.  The day’s low will be the Basing Point and in the beginning we would set a 10% stop.  Heavy number– but historic occasion.  If that’s more than you want to risk use a tighter stop.  You can always get back in and we will be commenting on GM for some time to come undoubtedly.

We will be implementing these strategies for our personal and family accounts.

Bon Chance.