GM trading strategy: short on open, cover on close

| | No TrackBacks

Wow. All you had to do with GM for the past couple of months was to short at the open and cover at the close. You'd have made 30% in September, 208% in October, and 33% so far in November. And GM is down from $5.00 at the open to $4.22 today. That's an extra 15%. If you didn't wait for the close, you'd be up 53% this month. On one trade per day.

Of course, you'd have to have really believed in this trade to have carried it out for all of September. There was a 25% drawdown until the 19th of September followed by +69% until the end of the month.

[Excel: Short GM]

[GM short equity line]

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This page contains a single entry by Hugh Brown published on November 7, 2008 1:48 PM.

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