Friday, March 6, 2009

GE - Taking a position

I put my money where my mouth is i.e. I bought some shares of GE.

My reasoning were quite simple (a) when the market was down 4% and financials down 10% GE held up well (b) on the candlestick chart on the previous day it showed a "hammer" on a "big volume" (c) there was strong long-term resistance at $6.60-$6.65. My strategy was that the day's trade will confirm my intuition that GE stock will hold up no matter happened to the market. So I waited until end of day to put in the trade although my price-point was at the high end of day's range.

So what now? Well payroll numbers came out this morning - it was bad but the future is off it's pre-market lows. Moreover for S&P500, there is a strong resistance at 680. GE is up in the market but I have to be watchful for key trading point.

RESISTANCE
$7.20 (very strong)
$6.85 (very strong)

SUPPORT
$6.60 (very strong)
$6.45
$6.20 (strong)



Then I heard something TheStreet.com.


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