GE’s Fall From Grace Continues

Welcome back everyone!  Normally I talk about key happenings in the markets as a whole each night to prepare people for the coming days. Tonight I am going to switch gears a bit. I am going to talk about General Electric.

Instead of being a top catcher or bottom catcher, be a trend trader. A lot of people have asked me about General Electric. We hit the long term weekly support. We bounced off, broke through it, came back, touched it, and then pulled away. It became official resistance then. We had some great full spike sell signals as well to seal the deal for me.

People wanted to know if this is a great buy opportunity. In no way, shape, or form, am I comparing General Electric to Enron (the ultimately ended up in fraud). However, this is the same story that I heard in companies like Enron. People said that it was a great stock! People started to say that if you liked it up there, that you would love it down there. The thing just ended up going lower and lower.

This is why I feel compelled to share this with you. This is why I focus on trading with or against the trend. Being a top of bottom catcher usually ends up sinking our trading or investment accounts. Bad things can happen very fast. Very bad things happened to the people at Enron.

These aren’t the days of Jack Welch anymore. It has been going to heck in a handbasket for a while now. There is no way I want to catch this as a buy. If you tried this stunt up here you already got cut in half. If you told the average person that you were going to lose half your portfolio or investment in General Electric, you would’ve been laughed out of the conversation.

This is why we look to see that the daily and weekly are coming down. We are looking for stochastic spike sells, half spikes, minis, M pattern sells, or any other types of patterns for entry or re-entry opportunities. That is why we focus on trading with the trends. If Wall Street felt the same way this would’ve went up a time ago.

Whether you are trading on an intraday or swing basis, it is the same strategy and approach. I am not going to want to catch the falling knife. I learned that plenty of years ago. I am in no hurry to repeat that mistake as well. Ask yourself, why are you trying to buy the bargain just to get your hands cut off?

I am not saying that General Electric due for a deeper conversation. Based on the number of people, perhaps it is time that people seem a little more money for a bounce. In the end, I do not want to be a top or bottom catcher. Some people have found that out the hard way.

You guys have a great night and I look forward to seeing you guys in the Live Trading Room tomorrow or in tomorrow night’s videos!

To learn more about Rob Hoffman Trader visit

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