It Takes a Trading Village

Hi Shoppers,

Check out this beauty of a stock chart shown to me by one of our Option Pit members:

What is it?

Why it’s General Motors (Ticker: GM).

GM has been in a downtrend since its high of $64.30 on June 7, trading down to $47.07 on Monday and creating a beautiful hammer.

Yesterday’s trade supports the reversal with a confirmation candle to the upside.

I think GM can trade back up to $53.50 and possibly to $55.00.

Looking at the options, I like the Sept. 10 expirations cycle with 18 days to go:

I will pay $1.05-$1.10 for the Sept. 10 50-strike calls.

If these calls trade down to $.70, I will take my losses. On the upside, I will begin to take profits when these trade towards $2.00.

Profit in Pumps email subscribers, don’t forget to call Customer Care today between 9 a.m.-5 p.m. at 888-872-3301 to get on board with the Trading Legion.

Thanks for Reading … See You Next Tuesday!

Licia Leslie

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