GM

GM, General Motors

Hamilton

GM blog aug 2011gm june 2012

Click on the left blog to enlarge. In reality it did stop at about $19 and did bounce about $10 ($9 to be exact), and it did prove to be a 4th wave. The whole thing does not channel particularly well but that may be due to the authorities randomly  throwing in a QE2 or the twist or whatever. Presently, as with NAV, it looks like we are starting  the 4th wave of 5 of C. A plausible target would be about $16 but one has to be careful not to hop on the bandwagon too early as so called extensions can ruin the fun real quickly.

GM

Hamilton

gm

Ford looked like it might be a buy, so perhaps GM is as well.  From the euphoria of the IPO, about $40 this stock has lost nearly 50%. More importantly it did it in a recognizable Elliott wave pattern, the ubiquitous A-B-C correction or 5-3-5 move. It did it a little faster than the arrow would suggest so there is still a serious possibility that this count is not complete and that we are only in wave 4 of C which would then target about $19 as shown by the (vector equal) red arrow. This also jives better with the market as a whole. In conclusion, this is a buy sometime in the next month between $21/$19 for a bounce of about $10 perhaps. Do use a stop!

I understand the stock is already trading at less than the cash on hand, an interesting but otherwise pretty meaningless metric.

F, GM, TM (Toyota)

Hamilton

 

tm32011

First Toyota. The big chart should bring tears to the eyes of the true EW(avers), in that it follows all the pragmatic little rules and guidelines perfectly, so far. My drawing is simplified just to get the message across better, but in reality wave 3 tops one block lower as wave 4 is most likely an irregular zig-zag. The top line should go through the top of wave 1. The result is that wave 5 is equal to 1 and 3 combined, there is alternation between 2 and 4 and the 3d of 3 is extended. All picture perfect.

Typically correction take a stock to the level of the 4th wave of previous degree, roughly $40. Furthermore, again this is typical, the stock loses at least 62% of its value, about $50. It has done neither of these,yet. It will , if it keeps behaving.

f32011

Ford has pretty well also done what it should having completed a first wave up, right into the level of the 4th wave and at about the 50% retracement level. From there it has dropped in, what appears to be, a very nice 5 wave down for A. If you are courageous the next B wave up should be good for $3/4 to the upside, but after that the stock should go down in the c wave  to at least $10 (but possible $7).

GM peaked after its public offering at the beginning of the year. Since then it has dropped below the issue price. There is little chart to go by but what little there is does not look promising.