Shadowtraders Blog


Enter the Blog

Tick Tock, Tick Tock...GM is running out of clock. Will they won't they will they won't they. Tick Tock Tick Tock.


On Friday, GM's bond holders added to the almost certain bankruptcy for GM by voting no to the restructuring negotiations underway..That sent GM's shares down another 26%.


This follows the week of May 11, when 6 top senior executives sold thousands and thousands of shares. This alone fortold certain bankruptcy.


GM spokeswoman, Julie Gibson said, "Our shareholders are obviously facing some pretty severe dilution if the bond exchange goes through or we end up in bankruptcy, Either way, no matter the outcome, we'll essentially be issuing new stock."


Next week is a shortened work week, with the Memorial Day holiday. But there will be plenty of economic news, unlike last week. Consumer Confidence begins Tuesday. That has been ticking up the last couple of months, so look for a long trade on that.


We'll see existing home sales. The important aspect of that will be how much is home sales and how much is short sales/foreclosures. It's been 50-50 for the last few months. Until the foreclosures are done, don't look for the housing market to go up.


Next week we'll see GDP. Bernanke already said that GDP would not improve dramatically this year, so expect that to be a weak number. And we'll round out the week with the Michigan Sentiment revised report. So there is lots of news -- unlike last week. If GM files for bankruptcy, that adds even more volatility to the Market.


Barbara Cohen, CIO, Shadowtraders


Register today to join us at our next Live Webinar!
While you're waiting, we'll send you back an invitation to view our online OnDemand Webinar and to do our online Self Paced E-Learning Preview.

Sign Up Now!


Any questions should be directed to shadowsupport