I think there is a nice shorting opportunity in General Electric that we can take advantage of this month. There’s nothing better than making money when a stock is falling. The reason is because stocks tend to move a lot faster on the way down, than on their way up. It’s the old, Escalator Up & Elevator Down behavior.
The way I see it, $GE hit our upside target of $31 last November, so there’s been no reason to own it. This target is based on the 161.8% Fibonacci extension of the massive consolidation throughout 2013-2015. Here is a weekly chart showing prices getting up there, pulling back in December and January, and now more recently rallying back up towards that $31 level and beyond: [Read more…]