General Motors (GM) short at break of short-term support

general motors is a failure and a short worth takingStock: General Motors (GM)

Long or Short: Short

Entry: 28.44

Stop-Loss: $29.20

Chart: General Motors (GM) Daily

General Motors GM swing trade short setup

Reason for Trade:  First time for everything as this will mark the first time that I have ever taken a position in this absolute mess of a company and to the tax payers of the United States. Nonetheless, Perhaps we can make some of that bailout money back for ourselves by getting short at $28.44. I’m looking for a move down to its longer-term trend-line at $27, and possibly a move down to $26.50. There is a lot of support for this company between $24-26 range, so I’m not quite confident the stock will make a heavy dent into that range, but if it can get down close to that range, that would result in a great trade for us. 

Of course I am cognizant of the current state of the market, and I may end up adding another long position to the portfolio to replace RDS.B that we sold this morning for almost 3% in gains (it reports this week so no need to hold it). The GM trade brings us to four total shorts with no long exposure. 

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