• Swing Trade Idea (GM) – March 28, 2022

    Equities managed to continue their recovery with both the SPY and QQQ gaining 1.8% and 2.2% respectively. However, our view for a full recovery in equities remains doubtful due to macro risks staying as is. Macro risks for equities include rising rates, inflation, rising energy costs, Russia/Ukraine conflict, and rising COVID cases that could easily dampen global demand should there be any lockdowns/restrictions. Our short-term outlook remains bearish and the recent rebound in equities may be a relief rally which provides a much better bearish opportunity rather than a rally continuation. 

    GM Bearish Idea:Our bearish idea today is General Motors. GM has experienced a bearish trend since the start of the year and has broken below multiple major support levels during this time. Price rebounded at the $40 major support level which provided a short-term rally to the 21 D EMA where GM has struggled to close above. This provides an excellent risk/reward bearish entry in line with the overall bearish trend with the target of a retest of the $40 major support level. 

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