The Trade Of The Day – 12/03/08
Source: http://feeds.feedburner.com/~r/StocksOptionsBlog/~3/473203301/Posted on Wednesday, December 3rd, 2008 | In Stocks to Watch
Wednesday December 3, 2008
Navivest
It seems that the automakers will definitely get the help that they are seeking from Congress, if the words of Nancy Pelosi, the Speaker of the House is any indication. Yesterday evening, while commenting on the plan that the automakers are submitting to congress, she stated that bankruptcy is not an option for the companies and that what would take a year to accomplish with bankruptcy, congress can do in a matter of weeks.
This came just as the stock market was closing at 4PM, so the auto stocks did not have time to react in regular trading.
While this is not a done deal, to the extent that the democrats are in control of congress, and democratic President-elect Barack Obama is calling for helping Main Street, not just Wall Street, it seems that there is a good chance of the automakers getting help from the government.
That being the case, going long Ford (F) and General Motors (GM) today might not be a bad trade. As with all long trades that we recommend on this site these days, we also issue the caveat that we are in a bear market and as soon as you get profits, you need to take them.
Ford is closed at $2.70, we would buy up to $3 and GM is trading at $4.85, we would buy up to $5.10.
Tags: Ford GM Trading Plan
Last 5 posts by Daniel Shepard
- Trade Recommendation For 10/15/09 - October 14th, 2009
- The Technical Trader – Coca-Cola FEMSA - October 14th, 2009
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- Stock Market Report – 10/13/09 - October 13th, 2009
- Stock Market Report – 10/13/09 - October 13th, 2009
Barack Obama, Congress, Ford, General Motors, Main Street, Nancy Pelosi, Stocks to Watch, USD, wall street
 About Daniel Shepard (http://www.navivest.com/blog)
Daniel Shepard is an Equity Analyst with Navivest, a stocks and options trading advisory services company that provides trading ideas on a subscription basis. |
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