Tuesday, June 3, 2008

General Electric (GE) ... Govern Yourself Accordingly.

Many think I have a bone to pick with CNBC, which I fondly call pom pom TV, but what most others refer to as CNBS ! The network is owned by General Electric. Now given that relationship, do you really believe you will get honest candid assessment of GE on that network. I often like to look at many issues from the other side of the fence, so let me re-position that issue on the pundit or guest's terms. Do you really believe you will be invited back on screen if you deliver an honest, candid assessment ? Who do think advertises on this network? Entities that depend on the circus and hype continuing., banks, brokers, insurers, fund purveyors and mortgage brokers, when the industry still existed!

Remember Joe Kernan's interview of GE CEO Jeff Immelt back after their earnings miss was released? That one was and will be a classic, to be filed under 'high school investment journalism 101'.

You also have to admire the incessant promotion of their stock picking contest. Fun and games in fantasy stock world land, as if fantasy baseball and football were not enough. Funny, but fun and games were not what Gerald M. Loeb, in his classic read, Battle for Investment Survival thought, but what would he know?

This all brings me back to the fact I want to highlight GE again. I am doing so because it is important enough to warrant the attention. Besides, I am sick of the shills and apologists on pom pom TV, who applaud and cheer every move GE makes. Steadfast in a refusal to take them to task and acknowledge the elephant in the room even though every one knows its there.

The GE chart (above) paints a bleak technical picture and while there are no sure things in the market, this doesn't look good at all. GE has broken a major support at $31, which I have hi-lited previously, and looks set to fall to the $19 level. Now, could this break of $31 be a fake out and we bounce? While possible, the chart argues otherwise as the level was broken on a monthly basis chart. As my notes above indicate, heaven help us if the $19 level is breached, for then you are talking about an 8-10 stock. I say this all not wishing for it to happen, just ackowledging what the charts and tape is saying. Govern yourself accordingly.

Now you can dismiss this assessment of GE as my Henry Blodgett, spotlight seeking moment of self aggrandizement, or you could continue to listen to the polyannic shills like Vince Farrell and Larry Kudlow and their ilk of tumbling and bouncing cheerleaders. The choice is yours. Funny, many of the institutional pension and hedge funds relied on the likes of Vince and Larry, Bear and Lehman, for counsel and advice when purchasing all those CDO/CLO/RMBS/swaps securities that now threaten the ship staying afloat.

Good speculating to you all.

Open Positions:
Long 6 units Currencyshares Japanese Yen ticker FXY @ $88.55 stop at $91.40
Long 3 units Ultrashort Dow DXD@ $50.12 stops 2/1 at DIA $132.68/130.26
Long 2 units Ultrashort Financials ticker SKF @ $103.90 stop at XLF $26.72
Long 1 unit Currencyshares Swiss Franc ticker FXF @ $96.25 stop at $93.82
Long 3 units Frontier Oil ticker FTO @ $28.35 stop at $27.82
Long 1 unit Ultrashort Real Estate ticker SRS @ $88.10 stop at IYR $71.08
Short 1 units Daimler AG ticker DAI @ $86.20 stop at $82.48
Short 1 unit Brinker Int'al ticker EAT @ $21.25 stop at $24.14
Short 3 units Retail Holders ticker RTH @ $96.72 stop at $98.56
Short 2 units Goldman Sachs ticker GS @ $191.53 stops at $197.68/$193.58
Short 2 units Darden ticker DRI @ $36.35 stops at $40.27/$38.34
Short 3 units Lehman ticker LEH @ $43.70 stops 2/1 at $47.46/$45.48
Short 2 units Deutsche Bank ticker DB @ $117.03 stop at $120.18
Short 1 unit HSBC ticker HBC @ $ 83.65 stop at $86.78

No comments: