Good morning. Happy Monday. Hope you had a nice weekend.
It’s official. GM has filed for bankruptcy. The company was more than 100 years old and had been the #1 car maker in the world for decades. They will now reorganize with the US government being a majority owner.
The market doesn’t seem too bothered by it. In fact, I’d say there’s a sense of relief that after months of talking and negotiating, it has finally and officially happened. The market doesn’t like uncertainty. It removes a hovering cloud.
World markets are up across the board. Futures here in the States suggest a big gap up for the cash market. The S&P will open at a new swing high, so despite all the negative and all the advisory services which have been bearish, here we are breaking out. I’ve said numerous times this isn’t a normal market, and just because the market follow some path in some previous recession doesn’t mean we’ll follow it again.
Here are the daily charts. As I’ve been stating for several weeks, there is nothing wrong with the market action. A two month rally has been followed by one month of consolidation.
And here are the weeklies. If these flag/pennant patterns are forming at the midpoints of their overall moves, we’re looking at a nice summer rally, but this is a big IF.
I can’t say it enough. Trade what happens, not what you think should happen or want to happen.
headlines at Yahoo Finance
stocks to watch from MarketWatch
today’s upgrades/downgrades
yesterday’s leaders & laggards
this week’s earnings & economic releases